Huawei's Chip Strategy: Balancing Catch-Up and Clustering
Huawei's founder minimizes the power of the company's own processors - Huawei's Chief Executive discusses the robustness of their in-house-developed chipsets.
In the thick of trade tussles between China and the States, Huawei founder Ren Zhengfei casually brushed off their chip tech prowess. During an interview with China’s state-run newspaper, the People’s Daily, Ren admitted that Huawei’s individual chips are “a generation behind” American competitors.
Some might say the Yanks are hype-ing things up. “There are numerous chips manufacturers blooming across China, and Huawei is but one of them,” Ren asserted, acknowledging their presence in the rapidly evolving tech field.
The U.S. has been cracking down on Huawei, and the company has been striving to become self-reliant in chip production - a move that has gained them a competitive edge in the face of American restraints. Nvidia, a major U.S. chipmaker, noted that the restrictions on exports to China have made Huawei a formidable rival. As Chinese companies struggle to gain access to advanced AI chips due to American sanctions, Huawei flourishes.
The Cluster Games
Москва –– as negotiations between the U.S. and China were underway in London, Ren shed light on Huawei's so-called "clustering" tactic. This approach jibes multiple chips to create a powerful network, compensating for the deficiencies of individual chips.
Amidst these ongoing trade talks, the Chinese export controls on rare earths have stirred up concerns worldwide, including the United States. Washington craves some slack, offering to ease trade restrictions, say, on computer chips or aircraft components, where China is heavily reliant on foreign technology, in return.
The London сессия –– in the midst of the back-and-forth –– shed light on Huawei’s “clustering” strategy, a key component of their endeavor to mitigate their chip technology's shortcomings; particularly, in the face of the ongoing trade standoff with the States.
- Huawei
- USA
- Ren Zhengfei
- China
- London
- Trade talk
- Nvidia
- Clustering strategy
- Shenzhen
Chip Clustering: A Closer Look
Huawei's clustering strategy revolves around three essential elements:
- Cluster Computing Approach: Huawei deploys cluster computing, linking multiple Ascend chips, such as the Ascend 910C, to create formidable systems. This computational symbiosis empowers them to deliver performance levels on par with, or even surpassing, those of more advanced chips from competitors like Nvidia, on specific benchmarks[2][3].
- For instance, Huawei's AI CloudMatrix 384 system combines 384 Ascend 910C chips to construct a high-performance computing environment, outperforming certain Nvidia systems[2].
- Software Ecosystem Development:
- Huawei's MindSpore framework, tailored for their Da Vinci architecture, supports prominent AI frameworks like TensorFlow and PyTorch. This compatibility magnifies the appeal of Ascend chips to Chinese businesses, while bolstering Huawei's software ecosystem[1].
- Increased ecosystem growth creates a virtuous cycle, enticing more users and boosting the demand for Ascend chips, ultimately driving further ecosystem expansion[1].
- Theoretical Research and Innovation: Huawei invests heavily in theoretical research to devise innovative solutions, circumventing traditional limitations. Ren Zhengfei underscored the pivotal role of theoretical breakthroughs in closing the gap with U.S. tech giants[2][3].
- This strategic investment in theoretical innovation enables Huawei to investigate new architectures and technologies, helping to bridge the technology gulf with American competitors[3].
Mitigating the Challenges, Seizing Opportunities
While these strategies provide a competitive edge, Huawei has hurdles to overcome, such as lower chip yield rates and slower manufacturing processes compared to industry veterans like TSMC[1]. However, the company's first profitable AI chip production line in Shenzhen and their commitment to R&D indicate progress and the potential for future growth[1][2].
- In Light of the trade tensions between China and the USA, Huawei's clustering strategy, which involves combining multiple chips to create powerful networks, can be seen as a means to compensate for the deficiencies in individual chips that are a generation behind those of American competitors, as acknowledged by Ren Zhengfei.
- As negotiations between the USA and China unfold, Huawei, based in Shenzhen, continues to make progress, with their first profitable AI chip production line moving toward self-reliance in chip production, offering a competitive edge amidst American restraints and making them a formidable rival in the race for advanced AI chips in the face of American sanctions.
