US-China Trade War in 2025: Huawei Sanctions Remain Amid Semiconductor Dominance Battle

 

Ascend 910 from Huawei

[Posting: 2025.05.19] US-China Trade War in 2025: Huawei Sanctions Remain Amid Semiconductor Dominance Battle

Despite a temporary easing of US tariffs on China as of May 2025, sanctions against Huawei—one of the primary targets in the semiconductor dominance war—remain strictly enforced. Huawei’s Ascend AI processors are high-performance chips independently developed by Huawei, with the Ascend 910D model aiming to outperform Nvidia’s H100, and the Ascend 920 model set for mass production in late 2025 using a 6nm process and HBM3 technology, delivering over 900 TFLOPs of computing power.

The United States maintains these sanctions under the justification of:

  • Potential military use of Ascend chips in China’s military technology.

  • Threats to US semiconductor technology leadership in the global AI market.

  • Concerns over data security, with fears of information leaks to the Chinese government.

While the US has temporarily eased tariffs in the trade war, the US-China tech dominance war continues unabated. The conflict between those attempting to block China’s semiconductor growth and those striving to advance it remains fierce. Previously, Huawei relied on TSMC for chip manufacturing, but now it has shifted to SMIC’s 7nm process in China, with plans for 6nm mass production. This shift highlights China’s strong commitment to achieving self-sufficiency in semiconductor technology.

Although there are questions about how far China can advance its semiconductor technology, the country’s full government support is expected to help it overcome technical challenges, ultimately influencing the outcome of the tech dominance war.

🌐 Huawei Ascend AI Processor

📌 2025: Ongoing Huawei Sanctions Despite US-China Trade War Easing

🚀 Introduction

Although the US-China trade war has temporarily eased in 2025, sanctions against Huawei remain firmly in place. These sanctions are not just about trade but are part of the broader US-China tech dominance war. Huawei's Ascend AI processors are a critical target of US sanctions, holding a significant position in the global AI semiconductor market. This article provides a comprehensive overview of the Ascend AI processor, the history of the US-China tech dominance war, and the impact of the 2025 trade war escalation.

🌐 The History of the US-China Tech Dominance War

❇️ 1. Cold War and Early Tech Competition (Late 20th Century)

The US-China tech dominance war began during the Cold War era with the US and the Soviet Union competing in space exploration and military technology. The US emerged as a global leader in technology, securing its geopolitical power.

❇️ 2. The IT Revolution and US Dominance (1990s)

The US solidified its global tech dominance through the Information Technology (IT) revolution, led by companies like IBM, Intel, and Microsoft. The US became a technology powerhouse.

❇️ 3. China’s Technological Rise (2000s–2010s)

In 2015, China launched its "Made in China 2025" initiative, aiming to become self-sufficient in advanced industries such as semiconductors, AI, and telecommunications. Huawei, SMIC, and ZTE gained global prominence, challenging US tech dominance.

❇️ 4. US-China Conflict and Huawei Sanctions (2018–Present)

The US, under the Trump administration, identified Huawei as a global security threat, leading to sanctions targeting Huawei’s 5G technology and Ascend AI processors. These sanctions continued under the Biden administration.

❇️ 5. 2025: The Trade War Resurgence

In 2025, the US expanded its sanctions, targeting China’s AI and semiconductor industries:

  • Restricted Imports: The US Department of Commerce imposed stricter controls on Chinese AI chips.

  • Limited Tech Collaboration: The US implemented tighter regulations on US-China tech partnerships.

  • China’s Response: China accelerated its push for AI and semiconductor self-reliance, with Huawei and SMIC at the forefront.

💡 What Is Huawei Ascend AI Processor?

✅ Overview of Ascend AI Processors

Huawei’s Ascend AI processors are high-performance chips designed specifically for AI applications. Built on the Da Vinci architecture, they are used in cloud computing, data centers, and autonomous driving.

✅ Key Models:

  • Ascend 910D: A model designed to surpass Nvidia’s H100 in performance.

  • Ascend 920: Scheduled for mass production in late 2025 using a 6nm process and HBM3 memory, targeting over 900 TFLOPs of computing power.

✅ Key Technologies:

  • Chiplet Architecture: Multiple chiplets are integrated into a single system, overcoming the limitations of ultra-fine processes.

  • High Bandwidth Memory (HBM): Ascend 910D uses HBM2e, while Ascend 920 uses HBM3 for efficient large-scale data processing.

  • Energy Efficiency: Although some models consume high power, the relatively low energy costs in China maintain their practicality.

🏗️ Design and Manufacturing of Ascend Processors

✅ Design by HiSilicon

Huawei’s Ascend AI processors are designed by HiSilicon, Huawei's semiconductor design subsidiary specializing in System on Chip (SoC) technology.

  • HiSilicon’s Role: Complete design, architecture development, and optimization of the Ascend processors.

  • Manufacturing Shift: Initially produced by TSMC (Taiwan), but now manufactured by SMIC (China) due to US sanctions.

  • Dependency on EDA Software: Despite self-reliance, Huawei’s design process still depends on US-origin EDA (Electronic Design Automation) software (Synopsys, Cadence).

🚫 Why Is Huawei Sanctioned?

🚫 1. Military Application Risk

The US is concerned that Ascend AI processors could be used in China’s military technology, including drones and missile guidance systems.

🚫 2. Threat to US Tech Dominance

Huawei’s Ascend processors directly compete with American AI semiconductor giants like Nvidia, challenging US tech leadership.

🚫 3. Data Security Concerns

The US fears that Huawei’s technology could be used for data espionage due to its close ties with the Chinese government, especially through its global network infrastructure.

📊 Future Outlook: US-China Tech War

The US-China tech dominance war is an ongoing struggle for global technology leadership. Key developments to watch include:

  • China’s Push for Semiconductor Independence: Huawei, SMIC, and other Chinese firms are rapidly advancing.

  • Potential for Further US Sanctions: The US may continue to impose restrictions on Chinese AI, semiconductor, and communication technologies.

  • Global Supply Chain Realignment: The US sanctions are driving a decoupling of China from global tech supply chains.

🌐 Conclusion

The US-China tech dominance war is a fierce battle that will shape the future of the global technology industry. Huawei's Ascend AI processors are at the heart of this conflict, influencing the global semiconductor market and the balance of tech power. 

Popular posts from this blog

Qualcomm : Beyond Mobile AP – Expanding into PC, Automotive, and Edge AI

Image
  [Posting: 2025.04.22] The company Qualcomm , which became widely known in the early 2000s through the licensing of CDMA (Code Division Multiple Access) technology , played a pivotal role in the mobile era by beginning to equip Android phones with its Snapdragon APs  (Application Processor) . Today, Qualcomm is expanding its market presence by replacing Intel Core processors in PCs with Snapdragon X Elite , and is also entering the fields of Edge AI and automotive applications . It is currently the sole supplier of APs for the Galaxy S25 series , highlighting its strong position in the premium market . However, as Taiwan’s MediaTek is steadily capturing market share not only in the premium segment but also in the mid- and low-end markets , it remains to be seen whether Qualcomm has the technological capabilities to maintain its solid footing in the Android mobile space. 📊 [Semiconductor] Qualcomm Company Analysis – 2024 Earnings, Product Line, Foundry Partners, and Sal...
Read more

Infineon: The No. 1 Automotive Semiconductor Company — Standing Shoulder to Shoulder with STMicro and NXP

Image
  Infineon [Posting: 2025.05.05] Infineon, the No. 1 automotive semiconductor company in the world, forms a "top-three" system alongside NXP and STMicroelectronics . With its own in-house fabs, Infineon is vertically integrating its power semiconductor production , while also partnering with foundry TSMC to manufacture high-performance MCUs using 28nm + RRAM (Resistive RAM) technology —pursuing both internal and external manufacturing to drive revenue. Additionally, together with TSMC, Bosch, and NXP, Infineon is establishing ESMC (European Semiconductor Manufacturing Company) in Dresden, Germany , planning to begin production by 2027 using 12/16nm FinFET and 22/28nm CMOS process nodes . This represents a strategic initiative to expand in-vehicle semiconductor fab capacity within Europe. Focusing on automotive MCUs and power semiconductors , Infineon is aiming to secure the supply of core components such as controllers and power modules essential for future electric vehicle...
Read more

NXP: The World’s No.2 Automotive Chipmaker, Standing Shoulder to Shoulder with Infineon and STMicro

Image
  NXP NXP, the world’s second-largest automotive semiconductor company , was spun off from Philips’ semiconductor division in 2006 and now forms a core part of the automotive semiconductor ecosystem alongside Infineon, STMicro, TI, and Renesas. NXP is recognized for its strong technological capabilities in automotive SoCs and MCUs. While Infineon and STMicro operate their own fabrication facilities, NXP is a pure fabless company that collaborates primarily with foundries such as TSMC, Samsung Foundry, GlobalFoundries, and UMC. This means that even though it ranks second in revenue, NXP is considered a leader in this segment purely through its design capabilities. Automotive accounts for 56% of its revenue, followed by Industrial & IoT (18%) and Mobile (12%) . The company’s overall revenue and operating profit are likely to increase depending on how it balances revenue contributions between automotive and consumer/industrial segments. As the share of SoCs and MCUs in elect...
Read more