Huawei plans to export AI chips to Middle East, Southeast Asia

Huawei Technologies Co. is reportedly seeking to export limited quantities of its Ascend 910B AI chips to markets in the Middle East and Southeast Asia.

Targeted countries include the United Arab Emirates, Saudi Arabia, Thailand, and Malaysia, despite the company facing production limitations.

Sources indicate that Huawei is offering its older-generation 910B processors in volumes of a few thousand units.

The company has approached potential buyers, including the Mohamed bin Zayed University of AI in the UAE.

However, no deals have been finalized, and interest has been limited.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ US export controls have created a bifurcated global AI chip market

Huawei’s small-scale export attempts reflect China’s broader response to years of US restrictions that have reshaped the semiconductor landscape.

Since 2019, when the US added Huawei to its Entity List, the company has been forced to develop alternative technologies and supply chains after losing access to critical US components 1.

This bifurcation is visible in Huawei’s strategy of reserving its more advanced 910C chips for domestic Chinese firms “that can’t access best-in-class American chips,” while attempting to introduce older 910B models to international markets.

The restrictions have accelerated China’s push for self-sufficiency, with Chinese companies developing contingency plans and alternative technologies despite significant challenges 2.

US policymakers acknowledge this dynamic, with Commerce Under Secretary Jeffrey Kessler noting that while China’s production remains limited, “we know they have global ambitions” in the AI chip sector.

2️⃣ The Middle East has become a critical battleground in the US-China tech competition

Huawei’s outreach to the UAE and Saudi Arabia targets markets where American companies have recently secured massive AI chip deals, highlighting the strategic importance of these emerging tech hubs.

The UAE and Saudi Arabia have already committed to purchasing “well over a million” chips from Nvidia and AMD, showing the region’s substantial investment in AI infrastructure and clear preference for American technology so far.