China's AI Chips and Export Controls: Ascend, SMIC — 2026-09-14
DeepSeek has placed a massive order for 160,000 Huawei Ascend 950DT chips, signaling a definitive shift toward domestic hardware as Nvidia remains locked out of the Chinese market. Meanwhile, Chinese AI chipmakers are raising prices by up to 50% due to supply constraints, while SMIC’s market share continues to climb, narrowing the gap with global leaders.
China's AI Chips and Export Controls: Ascend, SMIC — 2026-09-14
Top developments
DeepSeek Commits to 160,000 Huawei Ascend 950DT Chips
On September 13, 2026, reports confirmed that DeepSeek has ordered 160,000 Huawei Ascend 950DT chips for a new 1GW data center in Inner Mongolia. This move underscores the inability of Nvidia to supply China with compliant advanced chips, forcing leading AI labs to rely on domestic alternatives for large-scale inference and training infrastructure. The deal highlights Huawei's growing dominance in the high-end AI accelerator market.
Chinese Chipmakers Raise Prices by 50% Amid Supply Crunch
Recent reports indicate that Chinese AI chip manufacturers have increased prices by approximately 50% due to severe supply bottlenecks, particularly in High Bandwidth Memory (HBM). This price surge is reshaping the competitive landscape, as the scarcity of components limits production volumes for both Huawei Ascend and Cambricon chips, challenging the assumption that domestic substitution will be cost-effective.
SMIC Closes Gap with Samsung in Foundry Market Share
According to data released in mid-September 2026, SMIC’s revenue market share reached 5.4% in Q2 2026, a 20% quarter-over-quarter increase, bringing it within just 0.5 percentage points of Samsung Electronics. This growth reflects the surging demand for domestic chip manufacturing driven by export controls and Beijing’s push for semiconductor self-sufficiency.
US Agencies Accuse Chinese Labs of Industrial-Scale Distillation
In a report published around September 13, 2026, US agencies accused six Chinese AI labs of engaging in industrial-scale distillation of American models. This development adds pressure on Washington to tighten export controls further, potentially impacting future access to any remaining US technology or cloud services used for training.
Local view
Big Hat Group notes that the "Distillation Wars" are intensifying, with US authorities targeting Chinese labs while DeepSeek simultaneously eyes a $75B IPO, highlighting the decoupling of financial and technological spheres. The outlet emphasizes that Huawei is tightening its grip on the market, effectively becoming the default supplier for China's AI infrastructure needs.
Context & numbers
- DeepSeek Order Size: 160,000 Huawei Ascend 950DT chips for a 1GW data center.
- Price Increases: Chinese AI chip prices have risen by ~50% due to HBM shortages and high demand.
- SMIC Market Share: Q2 2026 revenue market share at 5.4%, up 20% QoQ.
- Cambricon Financials: H1 2026 revenue reported at RMB 5.996 billion (approx. $850M), with net profit of RMB 2.311 billion.
On the radar
- Nvidia H200 Deliveries: Despite licenses being approved for ~10 Chinese firms earlier in 2026, no deliveries have been confirmed, creating uncertainty for firms still seeking US hardware.
- HBM Supply Chain: Continued scrutiny on whether domestic HBM production (CXMT) can alleviate the bottleneck affecting Ascend and Cambricon output in Q4 2026.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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