Huawei's rotating chairman, Xu Zhijun, has admitted that the company’s AI chips are currently one generation behind those produced in the United States. However, he emphasized that Huawei is actively working on alternative methods to remain relevant in the competitive global semiconductor landscape.

Speaking at a press event during the recent tech innovation forum in China, Xu stated that while Huawei’s AI chips may not match the latest offerings from US firms in terms of raw performance, the company is focusing on practical deployments and infrastructure support to maintain competitiveness. "We are indeed behind, but we are not giving up," he said, as quoted by several Chinese and international media outlets.

Acknowledging the Gap

Xu’s statement reflects a rare public admission from a Chinese tech executive about the performance gap between Chinese and US semiconductor technologies. Currently, US firms like Nvidia and AMD dominate the AI chip sector with cutting-edge GPU-based hardware tailored for large-scale AI model training and inference.

Huawei’s own Ascend line of AI processors, while showing promise in domestic use cases, reportedly lacks the same power efficiency and computational throughput found in leading US alternatives. Yet the company is determined to focus on what it can control: building AI infrastructure suited for the Chinese market.

Finding Workarounds

Despite restrictions placed on the company by US sanctions since 2019, Huawei has pursued a combination of homegrown R&D, strategic partnerships, and optimization of available components to continue supporting AI applications.

Xu noted that Huawei is working on expanding its AI hardware ecosystem, particularly by refining its AI frameworks and deploying solutions optimized for Chinese enterprises. "We don’t necessarily need to compete head-on in every area," he said. "Instead, we aim to build practical platforms where our technologies can shine."

Industry observers suggest that Huawei’s strength lies not only in chip design but in its ability to offer vertically integrated AI infrastructure—including cloud services, networking gear, and energy-efficient data centers tailored for local demands.

Strategic Focus on Infrastructure and Enterprise AI

In place of competing on chip performance alone, Huawei is shifting attention to scalable solutions for industry use. The company has been supporting AI deployment in sectors like manufacturing, logistics, and urban planning, particularly in China and select international markets.

According to Xu, Huawei's priority is enabling "accessible and deployable" AI rather than aiming for benchmark supremacy. This includes pre-integrated software stacks, training libraries, and hybrid deployment options for clients that may not require ultra-high-end chips.

This pivot aligns with China’s broader strategy to reduce dependence on foreign technology while expanding its own AI capabilities within regulated frameworks.

Global Implications

Huawei’s comments come amid rising geopolitical tension around semiconductor access and tech self-reliance. As the US tightens export restrictions on high-end chips and fabrication tools, Chinese companies are under pressure to innovate domestically.

While Huawei acknowledges its limitations, the company's continued investment in R&D and alternative deployment strategies suggest a long-term play: to build a competitive AI ecosystem that may not mirror the US model but fits the needs of its own market.

Xu’s remarks offer a realistic yet resolute tone—an admission of current gaps, paired with a commitment to keep building. As the global race for AI dominance accelerates, Huawei appears ready to play the long game, even if on a parallel track.