This market presents a significant opportunity for Huawei, as it targets customers who need efficient chips for AI deployment, as opposed to the training phase dominated by Nvidia's chips. One of the key issues for Huawei is its ability to meet demand for its chips. Prospective customers have reported difficulties in securing a steady supply of Ascend chips, as Huawei has prioritized large state-run cloud providers such as China Mobile. This supply issue has limited Huawei's ability to expand its market share, especially among smaller enterprises seeking access to its chips. Currently, Huawei produces more than 75% of the AI chips in China, maintaining a dominant position in the domestic market. However, smaller competitors are struggling to keep up, particularly in securing capacity at SMIC (Semiconductor Manufacturing International Corp), which operates the leading production nodes for advanced chip manufacturing.