Daily AI Briefing - 2025-11-13

<result> The reports indicate that the Chinese government is intervening in how SMIC (China's largest chipmaker) allocates its chip output, prioritizing supply to Huawei amid the U.S. export restrictions on advanced chips. This is having a significant impact on the availability of AI chips in China.

Key points:

• The shortage of advanced AI chips has become so severe that Chinese authorities are now rationing SMIC's output, directing its limited capacity towards Huawei, China's AI flagship.
• This is an effort to help Huawei continue producing its Ascend series of AI chips, which it uses for its own AI training and inference workloads. Huawei is relying on SMIC to produce these chips as it can no longer access advanced chips from the U.S. and other Western suppliers.
• Analysts estimate that SMIC could produce up to 30% of Huawei's Ascend 910B AI chips by the end of 2025, as part of this government-directed prioritization.
• The Chinese government's intervention in SMIC's chip allocation shows the lengths it is going to in order to support its domestic AI capabilities and reduce reliance on U.S. technology in the face of export restrictions.
• This will likely continue to constrain the broader availability of advanced AI chips in China, as SMIC's limited capacity is diverted towards Huawei's needs at the expense of other Chinese AI companies and researchers.

</result>