US says China's Huawei can't make more than 200,000 AI chips in 2025
By Reuters
June 12, 20252
Jeffrey Kessler, Under Secretary of Commerce for Industry and Security at the Commerce Department,said that the U.S. should not take comfort in the figure. "China is investing huge amounts to increase its AI chip production, as well as the capabilities of the chips that it produces. So, it's critical for us not to have a false sense of security, to understand that China is catching up quickly," he told the House of Representatives Foreign Affairs South and Central Asia subcommittee.
White House AI Czar David Sacks said on Tuesday that China was only 3-6 months behind the U.S. in AI. The White House later said he was referring to China's AI models, adding that Chinese AI chips are one to two years behind their U.S. counterparts.
Huawei's CEO Ren Zhengfei told Chinese state media on Tuesday that the company's chips were a generation behind those of U.S. competitors, but that it invests more than $25 billion annually to improve performance.
Nvidia's AI chips are more powerful than Huawei's but Washington's export controls on its most sophisticated chips have caused it to lose market share.
The U.S. and China reached a tentative trade truce at talks in London this week after a previous agreement faltered over China's continued curbs on minerals exports.
That prompted the Trump administration to apply additional export controls on shipments of semiconductor design software, jet engines for Chinese-made planes and other goods.
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