Huawei just retasked a factory to prioritize AI over its bestselling phone

Reuters reports that Huawei will focus on increasing the manufacturing of its AI chip, the Ascend 910B, at the expense of production of its Mate 60 phones in at least one facility.

Huawei makes both its Ascend AI chip and the Kirin chip, which powers the Mate 60, in one facility. However, production in the plant has been low, people familiar with the matter told Reuters, so the company now plans to prioritize the AI chip. Demand for Ascend chips, which aid in training AI models, has been growing domestically. By delaying the production of chips for Mate 60, Huawei can focus on improving the number of usable and sellable chips from the facility. The Mate 60 helped Huawei beat Apple’s phone sales in the country in 2023, writes the South…

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