Huawei's new AI processor, the Ascend 910C, reportedly achieves 60% of the inference performance of Nvidia's H100 chipset. This development comes amidst ongoing U.S. sanctions against Huawei, raising questions about the company's ability to produce competitive technology despite these obstacles. Key factors affecting the commercial viability of the Ascend 910C include manufacturing yields, market availability, compatibility with popular AI frameworks, and pricing. Observers speculate about the larger strategic implications, especially concerning Taiwan's silicon supply chain and what increased competition could mean for the industry as a whole.