Nvidia lost $150bn Huawei created an AI chip better than Nvidia's! And China cancels ASML and TSMC

Nvidia lost $150bn: Huawei created an AI chip better than Nvidia's!

China shook the global tech market in 2025 by unveiling a new AI chip, the Huawei Ascend 910C, which was cheaper and more powerful than its Nvidia counterparts. On the back of this announcement, Nvidia's stock plummeted 6 per cent and the company lost $150 billion in market value in just a few hours. This came amid a full-scale breakup with ASML and TSMC, two key links in the global chip manufacturing chain. Beijing announced a complete halt to co-operation without any transition periods.

The move was not just a response to US sanctions, but a strategic coup. China is no longer relying on Western technology - it is building its own ecosystem. Huawei developed the 910C by combining two previous chips (910B) and starting production through Chinese company SMIC. While the technology lags behind the most advanced standards, it works - and is already in use.

The domino effect has been huge. DeepSeek, a Chinese AI model created for just $6 million, crashed Nvidia's capitalisation by $600 billion. It showed that China is capable of competing in the AI sector without the West. Blocking by the Netherlands in 2024 made $15 billion worth of ASML hardware in China unusable. And TSMC, fearing U.S. sanctions, stopped taking new orders from the PRC.

In response, China has launched the largest ever state chip manufacturing programme at $143 billion. All provinces and universities are participating, and companies from other industries are involved in development. In the face of constraints, China has even developed alternatives, such as triple-patterning DUV machines.

In addition, China has imposed export controls on the critical rare metals gallium and germanium, jeopardising chip production in the US, Japan and Europe. Thus, Beijing has retaliated with their own weapons.

Huawei has already started mass production of the 910C chip, which could replace Nvidia's products domestically. This deprives the US of billions of dollars in revenue. And with China controlling the supply of rare materials, the entire global semiconductor chain is at risk.

The question today is: who will lead the AI race - the US or China? While Beijing acts quickly, the US risks being left behind in the technology race of the future.
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