Huawei has significantly reduced China's reliance on foreign AI chips from 90% in 2021 to less than 60% by 2025, according to Morgan Stanley data cited by WSJ. The company projects further reducing this dependence to 25% over the next five years, claiming workarounds for near state-of-the-art silicon production without leading-edge machinery.
China's domestic AI chip supply is rapidly improving, reducing the effectiveness of US export controls and creating a more self-sufficient compute ecosystem.