U.S. Bans Use of Huawei AI Chipsets in All Countries, Including China

Md Mojahidul Islam:

In a sweeping move aimed at tightening the screws on China’s tech ambitions, the United States has issued a global ban on the use of Huawei’s AI chipsets, extending the restriction even within China’s own borders. The ban is part of Washington’s intensified campaign to curb Beijing’s rapid progress in semiconductor development — a domain where existing rules have struggled to keep up.

On May 13 (local time), the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) dropped a bombshell, stating that “using Huawei’s Ascend chipsets anywhere in the world constitutes a violation of U.S. export controls.” According to Bloomberg, this move will make it increasingly difficult for Huawei to build high-performance chips for AI applications and smartphones.

This fresh crackdown follows suspicions of China attempting to smuggle U.S.-made AI chipsets into its domestic market. In response, the BIS also issued supply chain protection guidance for American companies — a de facto export blueprint aimed at major U.S. chip developers like NVIDIA and AMD. Moreover, the agency plans to raise public awareness about the risks of U.S. AI chips being used in Chinese AI systems.

Interestingly, the announcement comes as the BIS throws out the “country-tiered” AI export control policy introduced under President Joe Biden. That system — which was set to go live on May 15 — proposed dividing countries into allies, general partners, and adversaries, with corresponding restrictions on AI chip exports.

But BIS wasn’t a fan. The agency slammed the tier-based model, arguing it would “stifle U.S. innovation” and place a “regulatory burden” on companies. Downgrading friendly nations to a lower tier, they warned, could also strain diplomatic ties.

Still, questions linger about how effective this new hardline approach will be — especially when it comes to Huawei’s relentless climb. The company has already pivoted toward Chinese tech firms that can’t access NVIDIA chips due to export bans — and it’s making headway.

One industry insider put it bluntly: “Huawei chips didn’t have much demand outside China anyway, so a global usage ban might not sting as much. But as access to U.S. chips tightens, Huawei’s domestic market might actually grow.”

The list of restricted uses is precise — it includes training AI models for any China-based entity using these chips. The U.S. has also singled out Ascend 910B, 910C, and 910D as being subject to immediate export controls.

The timing is notable. Just last month, The Wall Street Journal reported that Huawei is actively recruiting clients to test the Ascend 910D — a chip it’s touting as more powerful than NVIDIA’s now-banned H100, the heavyweight AI processor banned in China since late 2023.

Huawei’s hardware hurdles don’t end there. It’s already blocked from importing 5G chips, and U.S. sanctions have made it nearly impossible for Chinese firms to obtain state-of-the-art chip-making tools.

Yet, Huawei keeps defying the odds. In August 2023, it left the industry stunned with the launch of the Mate 60 Pro, powered by the Kirin 9000s — a processor built in-house by HiSilicon and manufactured by SMIC using 7nm process technology, despite sanctions.

This latest crackdown arrives at a delicate moment for U.S.-China relations. Both nations are tiptoeing around an ongoing trade war, which first erupted with aggressive tariffs on Chinese imports. Whether this AI chip showdown escalates or cools off the tech tension — that remains to be seen.