Beijing, 3 October 2025 – Huawei Technologies Co. is being shown to rely on advanced components from Asia’s leading semiconductor manufacturers, despite U.S. export restrictions aiming to cut off such dependencies. A teardown of Huawei’s third-generation Ascend 910C AI accelerators revealed that chips from TSMC, Samsung, and SK Hynix are embedded in multiple samples. That finding underscores that China’s indigenous AI ambitions still depend heavily on foreign hardware.
In its analysis, research firm TechInsights discovered that TSMC had manufactured the die core in the examined units, while Samsung and SK Hynix contributed high-bandwidth memory (HBM) or related memory components in two distinct samples. The presence of these components in Huawei’s flagship AI chips highlights both the sophistication of its supply chain and the challenge of fully domesticizing semiconductor production under sanctions.
TSMC responded by noting that the analyzed 910C hardware appears to be based on dies traced to October 2024, and not newer production. The company reiterated that it has complied with all U.S. export controls and that shipments and manufacturing of that chip have been halted since then. Samsung likewise asserted that all transactions follow export laws, and SK Hynix said it ceased dealings with Huawei after 2020.
Observers say this dependency reveals a continuing structural vulnerability: even as China pushes for self-reliance via its “homegrown” semiconductor initiative, Huawei and peer firms are still tethered to foreign suppliers for critical elements, especially in memory and packaging.
Investor & Strategic Insights for Asia
Huawei’s reliance on foreign chip components carries several ramifications for technology investors, regional policymakers, and semiconductor strategy watchers:
- Export controls are porous but risky
The fact that Huawei could embed these foreign components suggests gaps or workarounds in export restrictions. However, continued exposure increases legal, regulatory, and reputational risks for both suppliers and end users. - Memory and packaging remain chokepoints
China’s biggest bottleneck in AI chip sovereignty remains in memory & packaging (HBM, interconnect, 3D stacking). Securing or developing domestic alternatives at scale will be crucial in breaking the foreign dependency cycle. - Valuation premium for firms with “compliance immunity”
Companies in Taiwan, South Korea, and Malaysia that maintain export-compliance credentials while supplying advanced components may command higher valuation multiples, as their products become more critical under geopolitical tension. - Accelerated investment in foundry and memory research
This exposure will intensify pressure on Chinese foundries (e.g. SMIC, Hua Hong) and memory developers (YMTC, CXMT) to catch up. But the path to parity is steep. It may take years, capital, and state support. - Supply chain decentralisation as resilience play
Asian firms may diversify manufacturing footprints across jurisdictions (e.g., Southeast Asia, India) to hedge against export controls. For investors, this signals potential winners in “neutral territory” foundry or positing nodes.
