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Huawei has decided to suspend smartphone production and prioritize AI chips

Huawei has decided to suspend smartphone production and prioritize AI chips

Huawei has slowed down production of its Mate 60 smartphones due to growing demand for artificial intelligence (AI) chips. It’s worth noting, the company uses the same facility to produce Ascend AI and Kirin chips for its smartphones. The global race for AI functionality and the technological standoff with the US has sidelined Huawei’s smartphone manufacturing. US sanctions have restricted the company’s access to advanced technology for chip manufacturing and affected smartphone production.

The US sanctions have restricted the company’s access to advanced technology for chip manufacturing and affected smartphone production.

Huawei has decided to suspend smartphone production and prioritize AI chips (7279.jpg)
The AI humanoid from the 2014 film «Ex Machina». Technology has long been featured in Hollywood movies, but is increasingly becoming a part of real life. Photo: TCD/Prod.DB/Alamy

Chinese authorities have announced data center projects, driving demand for the Huawei Ascend. Huawei has prioritized the production of Ascend chips, which slowed the release of the Mate 60 smartphones. The company hasn’t shown much ambition in chip manufacturing, but its achievements became apparent after the introduction of the Mate 60 with 5G technology.

Huawei’s progress has been slowed by the introduction of the Mate 60 with 5G technology.

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