China’s Huawei Develops New AI Chip to Rival Nvidia

Summary

WSJ What’s News: Detailed Summary of "China’s Huawei Develops New AI Chip to Rival Nvidia"

Release Date: April 28, 2025
Host: Luke Vargas
Producer: Kate Bullivant and Daniel Bach
Supervising Producer: Sandra Kilhoff

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1. Huawei's Ambitious AI Chip Challenge

Overview:
A significant portion of this episode delves into Huawei's latest endeavor to develop an artificial intelligence (AI) chip, the Ascend 910D, aimed directly at competing with Nvidia’s high-end offerings. This move marks a pivotal step in China's technology sector, especially amid ongoing geopolitical tensions and trade restrictions imposed by the United States.

Key Discussions:

• Development and Timing:
  Luke Vargas introduces Huawei’s new chip, highlighting its intended competition with Nvidia. He notes the chip is in early development stages, with the first batch expected as late as next month. The timing is crucial, aligning with U.S. actions that have created opportunities for Chinese tech firms.

  "China's Huawei is developing a new AI chip that aims to rival high-end offerings from US semiconductor giant Nvidia."
  — Luke Vargas [00:20]

• Background and Strategic Shift:
  Lisa Lin, a Wall Street Journal tech reporter based in Singapore, provides context on Huawei's transformation from a telecom equipment manufacturer to a chip designer. Five years prior, U.S. sanctions forced Huawei to pivot away from relying on American chipmakers like Qualcomm and Nvidia, propelling their in-house development efforts.

  "Huawei started out as a cell phone and telecom equipment maker, and Washington basically forced their hand [...] they have to design, make their own and now they're even selling it."
  — Lisa Lin [02:39]

• Production Challenges:
  Lisa Lin elaborates on the hurdles Huawei faces, particularly in mass-producing the Ascend 910D. Without access to Taiwan Semiconductor Manufacturing Company (TSMC), Huawei relies on the less efficient Semiconductor Manufacturing International Corporation (SMIC), raising questions about scalability and efficiency.

  "The first big one is production. Huawei can design such a fantastic chip, but realistically, can they produce it in the mass quantities needed [...]" — Lisa Lin [03:54]

• Design Limitations:
  Despite innovative packaging methods—combining multiple mature chips to enhance performance—the Ascend 910D is more power-intensive compared to Nvidia’s offerings. This indicates that while Huawei is making strides, there remains a gap in chip performance efficiency.

  "They used packaging methods to pack what is the equivalent of three to four existing mature chips together to make them more powerful. However, [...] more power hungry."
  — Lisa Lin [04:20]

• Future Prospects:
  Lisa Lin offers a broader perspective, suggesting that China's chip industry is poised to become a formidable global competitor within the next five to ten years, thanks to a robust ecosystem and supply chain infrastructure.

  "Chinese chip industry is now at the point where within five to 10 years it could become a formidable global force to its American rivals."
  — Lisa Lin [04:50]

Conclusion:
While Huawei's Ascend 910D represents a bold move to challenge Nvidia's dominance in AI chips, significant challenges in production scalability and design efficiency remain. Nevertheless, this development underscores the accelerating capabilities of China's semiconductor industry amidst evolving global trade dynamics.

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2. Canadian General Election: A Shifting Political Landscape

Overview:
Canada is undergoing a crucial general election amidst economic uncertainties and strained relations with the United States. The election features a battleground between the governing Liberals and the Conservative Party, with recent political developments influencing voter sentiment.

Key Discussions:

• Polling Shifts:
  Once holding a substantial 20-point lead, the Conservative Party under leader Pierre Poilievre now trails the Liberals by three points following strategic leadership changes and U.S. trade tensions.

  "But that is until Prime Minister Justin Trudeau was replaced by former central bank governor Mark Carney and President Trump announced tariffs. And now the Liberals are polling with a three point lead over the Conservatives."
  — Luke Vargas [07:30]

• Leaders' Strategies:
  Pierre Poilievre emphasizes combating President Trump's tariffs with strategic "counter-tariffs," aiming to inflict maximum damage on the U.S. economy while minimizing domestic impact. In contrast, Mark Carney pledges to enhance Canada’s economic resilience and address inflation and housing affordability.

  "We need to fight Trump's tariffs with counter-tariffs of our own that cause maximum damage in the United States with minimum impact here."
  — Pierre Poilievre [08:14]

  "Mark Carney's plan is to do exactly what Trudeau did on steroids—more spending, more taxes, more soft on crime."
  — Rebecca Pichotto [08:52]

• Impact of Recent Events:
  The tragic attack in Vancouver, where a man killed 11 people at a street festival, has led both parties to adjust their campaign schedules. While the incident is not classified as terrorism, it has injected a somber tone into the election discourse.

  "Over the weekend, both leaders [...] changed their campaign schedules in light of Saturday's attack in Vancouver."
  — Luke Vargas [09:00]

Conclusion:
The Canadian general election reflects a dynamic political environment, with leadership changes and external pressures reshaping voter preferences. The interplay between domestic policies and international trade relations continues to be a critical factor influencing the election's outcome.

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3. Midwest Housing Market: Toledo as a Microcosm

Overview:
The housing market in the Midwest, particularly in Toledo, Ohio, is experiencing unprecedented competition driven by both traditional buyers and significant out-of-state investor interest. This surge is transforming previously affordable regions into hotbeds of real estate investment.

Key Discussions:

• Investor Influx:
  Rebecca Pichotto highlights the dramatic rise in real estate investments in Toledo, where single-family home purchases by investors have doubled from 15% in February 2018 to 30% in February 2025. These investors are attracted to Toledo's affordability and potential for high returns through rental businesses and house flipping.

  "It's also out of state real estate investors who may never have set foot in Toledo. [...] single family home purchases by investors, it doubled from 15% in February 2018 to 30% this February."
  — Rebecca Pichotto [11:15]

• Impact on Housing Affordability:
  The influx of investors is driving up home prices and rental rates, undermining Toledo’s reputation as a bastion of housing affordability. This trend mirrors broader patterns across the Midwest, where traditionally affordable markets are experiencing rapid price escalations.

  "Given that it is causing investors and buyers to flock there in a way that's causing home values and even rent prices to rapidly appreciate."
  — Rebecca Pichotto [11:47]

• Broader Midwest Trends:
  Toledo serves as a case study for the Midwest housing market, illustrating how increased demand from investors is spearheading rent growth in the region, contrasting with declining national trends.

  "So the story of Toledo is sort of the story of the Midwest housing market right now."
  — Rebecca Pichotto [11:51]

Conclusion:
Toledo's housing market exemplifies the challenges facing the Midwest as affordability diminishes under investor pressure. The rapid appreciation of home values and rental prices signals a shift from an affordable landscape to a competitive real estate environment, impacting both local residents and the broader housing market dynamics.

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4. Additional Business Highlights

Upcoming Earnings Reports: The episode outlines a busy week ahead for business earnings, with major companies like Microsoft, Meta, Amazon, Apple, Alphabet, Nvidia, Tesla, Coca-Cola, General Motors, Pfizer, Starbucks, Visa, Eli Lilly, Mastercard, McDonald's, Chevron, Exxon, and others scheduled to report their quarterly results. These reports are highly anticipated as they could influence market movements and investor sentiment.

Mergers and Acquisitions: Several significant M&A activities are on the horizon:

• Deliveroo: Shares surged to a three-year high following a $3.5 billion takeover approach from DoorDash.
• Airbus: Acquiring key assets from Spirit Aerosystems to bolster its commercial aircraft divisions.
• Merck: Expanding its pharmaceutical portfolio by purchasing SpringWorks Therapeutics.
• Spanish Banks: MedeoBanca and Banca Generale are involved in multi-billion-dollar deals.

Economic Indicators: Investors will also be monitoring the Federal Reserve’s preferred inflation gauge, U.S. first-quarter GDP, the Bank of Japan's rate decision, and U.S. manufacturing PMIs. Additionally, the first monthly U.S. jobs report since significant tariff changes and the end of the de minimis exemption for shipping low-value goods from China are set to impact economic forecasts.

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Final Thoughts

This episode of WSJ What’s News provides an insightful analysis of Huawei’s strategic moves in the AI chip market, the evolving political landscape in Canada amid economic pressures, and the transformation of the Midwest housing market driven by investor activity. Coupled with a preview of upcoming business earnings and significant M&A activities, listeners are well-equipped with comprehensive knowledge to navigate the current economic and geopolitical climate.

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Notable Quotes:

1. "China's Huawei is developing a new AI chip that aims to rival high-end offerings from US semiconductor giant Nvidia."
   — Luke Vargas [00:20]

2. "Chinese chip industry is now at the point where within five to 10 years it could become a formidable global force to its American rivals."
   — Lisa Lin [04:50]

3. "We need to fight Trump's tariffs with counter-tariffs of our own that cause maximum damage in the United States with minimum impact here."
   — Pierre Poilievre [08:14]

4. "It's also out of state real estate investors who may never have set foot in Toledo [...] single family home purchases by investors, it doubled from 15% in February 2018 to 30% this February."
   — Rebecca Pichotto [11:15]

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For more insights and updates, visit WSJ.com.

Transcript

[Luke Vargas]

Truestage companies simplify the complex with 90 years of delivering accessible insurance and innovative financial solutions. Let's work together and build a better tomorrow today. Learn [e-mail] WSJ Trustage is the marketing.

[Rebecca Pichotto]

Name for Trustage Financial Group and its subsidiaries and affiliates. Corporate headquarters is located in Madison, Wisconsin.

[Luke Vargas]

China's Huawei develops a new AI chip designed to go toe to toe with Nvidia Plus Canadians head to the polls in an election dominated by threats from Washington and how one Ohio city, population 265,000, became America's housing gold mine.

[Rebecca Pichotto]

With home prices at sky high levels in many markets, relatively low priced pockets of America like Toledo are seeing a lot more elevated interest. It is one of the sort of hidden gems of housing affordability.

[Luke Vargas]

It's Monday, April 28th. I'm Luke Vargas for the Wall Street Journal and here is the AM edition of what's news, the top headlines, business stories moving your world Today, it's almost time for the culmination of earnings season as Microsoft, Meta, Amazon and Apple prepare to report quarterly results in the coming days. Along with Alphabet, Nvidia and Tesla, those magnificent seven tech stocks were largely responsible for lifting stocks out of the 2022 bear market. But currently they find themselves in a very different situation. So far this year they've collectively shed 2.5 trillion DOL in market value, with each falling more than 6%, and their earnings dominance is expected to diminish. According to analysts polled by FactSet, the MAG7 are on pace for just 16% profit growth this year, down from about 37 last year. Microsoft and Meta's results are due on Wednesday, with Amazon and Apple following on Thursday. Meanwhile, just months after the emergence of Chinese AI model Deepseek dented some investors faith in the supremacy of US Tech, we exclusively report that China's Huawei is developing a new AI chip that aims to rival high end offerings from US semiconductor giant Nvidia. And here with more from Singapore is Journal tech reporter Lisa Lin. Lisa, this chip, the Ascend 910D, we should note, is still in the early stages of development. A first batch of the processor isn't even set to be delivered until late next month at the earliest. However, I gather the significance here is namely that there's a perceived market opening thanks to actions by Washington, and that there's a Chinese company making very concrete plans to try to capitalize on this moment.

[Lisa Lin]

Yeah, you're right on both counts, Liuke. Although I would point out there's a third dimension to this and it would Be good to remind listeners on the background of Huawei. This Chinese tech company started out as a cell phone and telecom equipment maker and Washington basically forced their hand and forced them to go all in with designing and producing chips when they cut Huawei off. Advanced American technology five years ago. They were once big buyers of Qualcomm, Nvidia, intel chips and now they have to design, make their own and now they're even selling it. And it's a huge addressable market. I mean, the timing really coincides with when U.S. policymakers have made their latest move to try and cut China off. The latest advanced U.S. chips, the most recent one being the ban of Nvidia's H20 chips into China. The H20 is not seen as the most top end chip from Nvidia, but it was the best chip available for sale by an American GPU or AI chip maker into the country. And now these chips have been cut off. So now you have more willing buyers in China for Huawei chips than there were before.

[Luke Vargas]

The road ahead, though not certain, far from it, I imagine tech promises are not the same as actually delivering on them. What challenges does Huawei have to still overcome to capitalize on this?

[Lisa Lin]

The first big one is production. Huawei can design such a fantastic chip, but realistically, can they produce it in the mass quantities needed for both for themselves, for internal use and for external sales? That is a big question. Huawei's been cut off from the world's biggest and recognized as the best foundry, tsmc. And the Chinese equivalent of that smic, is far from as efficient in terms of production as TSMC is. The next is that Huawei's chip design and chip making really still lags Nvidia. And we know this because sources tell us that in order to produce the 910D, what Huawei did was they used packaging methods to pack what is the equivalent of three to four existing mature chips together to make them more powerful. However, the eventual result is such a chip is a lot more power intensive and power hungry. So you can tell that in order for Huawei to catch up with Western peers such as Nvidia, they've had to overcompensate. I think one of my main takeaways from this story and from talking to people in China's chip space is not to get caught up in the fact that Huawei has had this innovation, but to see bigger picture and realize that the Chinese chip industry is now at the point where within five to 10 years it could become a formidable global force to its American rivals. It has got the right ecosystem and the supply chain to keep innovating in that direction.

[Luke Vargas]

That was Journal tech reporter Lisa Lin. And there's a lot besides tech earnings that investors will be watching this week. Updates from Coca Cola, General Motors, Pfizer, ups, Starbucks and Visa are due tomorrow. Wednesday, we'll bring an update on the Fed's preferred inflation gauge, along with an initial reading of US first quarter GDP. Eli Lilly, Mastercard and McDonald's will report earnings Thursday, the same day we're due a rate decision from the bank of Japan and a pair of US manufacturing PMIs. Friday, we'll see quarterly updates from oil majors Chevron and Exxon, along with the first monthly U.S. jobs report since President Trump's Liberation Day, tariff announcements and the scheduled end of the de minimis exemption for shipping lower value goods to the US From China, which had boosted the fortunes of Shein and Temu in recent years. And as if the week wasn't busy enough, we've had a slew of M and A announcements this morning. Shares of Deliveroo hit a three year high in London after the food delivery company said it received a more than $3.5 billion takeover approach from DoorDash. Meanwhile, Airbus is taking over key US and European assets from supplier Spirit Aerosystems, which rival Boeing agreed to buy last year. The carve out secures crucial parts for Airbus commercial aircrafts and comes ahead of this week's self imposed deadline for Boeing to finalize its takeover of Spirit. And we've also had multi billion dollar deals involving German pharmaceutical company Merck, which is buying springworks Therapeutics and between Spanish banks Medeobanca and Banca Generale. Check out WSJ.com for more on all of those deals and how investors are reacting. Coming up, Canada heads to the polls in what's set to be a major election upset and a referendum on ties with America and how buy are being priced out of the red hot Midwest housing market. We've got those stories and more after the break. This message comes from Viking, committed to exploring the world in comfort. Journey through the heart of Europe on an elegant Viking longship with thoughtful service, destination focused dining and cultural enrichment on board and on shore. And every Viking voyage is all inclusive with no children and no casinos. Discover [e-mail] Canadians are voting in a general election today to decide who will lead the country amidst the economic uncertainty it faces and negotiate with President Trump over trade and security. Just a few months ago, the Conservative Party under leader Pierre Poliev held a more than 20 point polling lead over the governing Liberals. But that is until Prime Minister Justin Trudeau was replaced by former central bank governor Mark Carney and President Trump announced tariffs. And now the Liberals are polling with a three point lead over the Conservatives. We need to fight Trump's tariffs with counterterroriffs of our own that cause maximum damage in the United States with minimum impact here. Poliev, meanwhile, a career politician has tried to make the election about inflation and housing prices that are among the highest in the world, which he blames on Trudeau's leadership over the last decade. Mark Carney's plan is to do exactly.

[Rebecca Pichotto]

What Trudeau did on steroids more spending, more taxes, more soft on crime. We can't afford four more years of the Liberals.

[Luke Vargas]

We need a change. Over the weekend, both leaders, along with the heads of Canada's other political parties, changed their campaign schedules in light of Saturday's attack in Vancouver, where 11 people were killed and at least 20 injured after a man drove through a crowd at a street festival, according to local police, who said the incident wasn't terrorism. The suspect was apprehended by bystanders at the scene and charged with eight counts of second degree murder yesterday, though prosecutors say more charges are possible. Israel's government is under pressure to lift an aid ban on Gaza, with humanitarian supplies there running out after a blockade that's lasted almost two months. Officials are now debating the best way to get supplies back into the territory without strengthening Hamas. The military reportedly favors working with international organizations that have distributed aid through the war, though some far right officials want Israel to play a greater role in distributing the aid itself. Not shying away from perceptions that Israel is an occupying force, we are exclusively reporting that the leaders of some of the nation's top universities have assembled a private collective to counter the Trump administration's attack on academic independence across higher education. The group, which includes about 10 schools from Ivies and leading private research research universities, have discussed red lines they won't cross in negotiations, including autonomy over admissions, hiring and what they teach and how it's taught, according to a source familiar with the government task force that's issued funding threats to universities. The Trump administration has been worried that schools would team up in resistance because it's harder to negotiate with the united front. The White House didn't respond Sunday to requests for comment, and the struggle to find a cheap house is transforming America's heartland from one of the last places for lower priced homes into a battlefield pitting Wall street landlords against traditional buyers. Toledo, Ohio, is one of those places where housing reporter Rebecca Pichotto says that competition for homes is more cutthroat than ever as interest in the city peaks.

[Rebecca Pichotto]

It's not just from traditional home buyers. It's also out of state real estate investors who may never have set foot in Toledo. But they see these kinds of kinds of rare, low priced markets as gold mines for single family rental businesses and house flipping operations and things like that. So as a result, the overall share of Toledo single family home purchases by investors, it doubled from 15% in February 2018 to 30% this February. That's according to the data firm Cotality, formerly known as CoreLogic.

[Luke Vargas]

And Rebecca told us that Toledo is a case study for what's happening in.

[Rebecca Pichotto]

The broader Midwest as home prices have risen. People have seen the Midwest as kind of the last factions of housing affordability in America. And given that it is causing investors and buyers to flock there in a way that's causing home values and even rent prices to rapidly appreciate. So rent growth has steadily ticked upwards in the broader Midwest as it's declined nationally. So the story of Toledo is sort of the story of the Midwest housing market right now.

[Luke Vargas]

And that's it for what's news for this Monday morning. Today's show was produced by Kate Bullivant and Daniel Bach. Our supervising producer is Sandra Kilhoff. And I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show and until then, thanks for listening.