Huawei’s advanced AI chip initiative, however, suddenly faced a major obstacle a year later in August 2020, when the US Commerce Department tightened restrictions by barring the sale of semiconductor products and services – sourced from anywhere with US technology – to the company and its affiliates without a requisite licence.
As a result, Huawei supplier Taiwan Semiconductor Manufacturing Co, the world’s largest and most advanced contract chipmaker, ceased doing business with the Chinese firm and its integrated circuit (IC) design unit HiSilicon to comply with US curbs.
Fast-forward to 2025, and Huawei has remained resilient in the face of US sanctions.

Jensen Huang, founder and CEO of AI chip giant Nvidia, has been the most prominent industry leader to recognise the resurgence of Huawei in the IC sector.