The announcement is significant because one of Nvidia’s biggest advantages in the AI boom has been the belief that advanced AI chips would remain scarce, expensive, and heavily dependent on companies like TSMC and ASML.

US sanctions since 2019 were designed to slow China’s semiconductor progress by cutting Huawei off from advanced lithography tools. Instead, Huawei appears to be pursuing an alternative path focused on vertical chip stacking and reducing signal delay rather than relying entirely on smaller transistor sizes.

If successful, the approach could reshape assumptions around global AI hardware dominance over the next decade.