Strong demand for domestic AI processors is expected to lift Huawei’s chip revenue sharply this year.
Chinese technology giant Huawei is projecting a sharp rise in revenue from its artificial intelligence chip business this year, driven by increasing demand from domestic customers seeking locally developed semiconductor solutions. According to a report by the Financial Times, the company expects AI chip revenue to grow by at least 60% compared with last year.
Based on confirmed orders, Huawei anticipates chip-related revenue to reach approximately $12 billion in 2026, up from around $7.5 billion recorded in 2025. The surge reflects accelerating adoption of Chinese-made AI hardware as companies expand data center capacity and invest in artificial intelligence infrastructure.
Much of the demand is reportedly tied to Huawei’s latest Ascend 950PR processor, which entered mass production in March. The chip has attracted strong interest from domestic technology firms looking for alternatives amid ongoing supply constraints and shifting global semiconductor dynamics.
Huawei is also preparing to strengthen its product lineup with an upgraded version, the Ascend 950DT, expected to launch in the fourth quarter. The upcoming processor is likely aimed at improving performance and expanding deployment across advanced AI workloads.
The anticipated growth highlights Huawei’s expanding role in China’s AI semiconductor ecosystem, where locally designed processors are gaining momentum as enterprises prioritize supply-chain resilience and technological self-reliance.
