Huawei
Chinese multinational technology conglomerate producing AI chips, smartphones and telecommunications infrastructure.
Bruegel's Analysis 13/2026, published 19 May 2026, cited Huawei's trajectory as evidence that China's AI-chip industry is closing the compute gap: domestic chips already power 41 per cent of Chinese data centres, and Huawei projects USD 12 billion in AI-chip revenue for 2026.
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How far has Huawei closed China's AI chip gap with the West?
Timeline for Huawei
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Huawei is a Chinese technology company whose AI accelerator chips have become a reference point for how quickly China is closing the computing gap with Western semiconductor makers. Bruegel's Analysis 13/2026, published 19 May 2026, found that Chinese data centres already run 41 per cent on domestic chips, and cited Huawei's own projection of USD 12 billion in AI-chip revenue for 2026, up from USD 7.5 billion in 2025.
Bruegel used that trajectory to frame Europe's predicament: China and the United States are each building sovereign silicon supply chains, while Europe is legislating around the compute gap, through measures such as CAIDA's data-location rules, rather than closing it. The report found that funding to reduce Europe's dependence on Nvidia and other Western suppliers remains unresolved.
Domestic chips are closing the gap
Bruegel's Analysis 13/2026, published 19 May 2026, found China's domestic chip industry closing the computing gap with the West: Chinese data centres already run 41 per cent on domestic silicon, and Huawei's own projection put its AI-chip revenue at USD 12 billion for 2026, up from USD 7.5 billion in 2025.
Yet the EU is moving to keep that same growth out of its own infrastructure. The European Commission's €4.12 billion AI Gigafactories funding call, confirmed for July 2026, requires majority European ownership and explicitly excludes high-risk vendors including Huawei, Commission Vice-President Virkkunen said. The call will be the first test of whether that ownership rule can be enforced when no European AI accelerator chip yet exists.
How much AI chip revenue does Huawei project for 2026?
What are Huawei's Ascend AI chips and why do they matter?
Is Huawei allowed to operate in Europe?
Why does Bruegel compare Huawei to Europe's AI chip problem?
