Chinese tech giant Huawei plans to start mass producing its latest artificial intelligence chips in the first quarter of 2025, even as it struggles with U.S. restrictions on its production, two people familiar with the matter told Reuters.

The telecom giant has sent samples of its latest Ascend 910C chip to some tech companies and has started taking orders, the sources told Reuters. Huawei aims to take on U.S. artificial intelligence chipmaker Nvidia with the chip.

Huawei is at the heart of the US-China trade and security dispute. Washington has imposed a series of restrictions on Huawei and other Chinese companies, arguing that their technological advances pose a threat to US national security. Beijing denies the charges and is trying to become self-sufficient in advanced semiconductors.

China's Semiconductor Manufacturing International Corp (CMIC) makes the 910C chip for Huawei, but a lack of advanced lithography equipment has limited its commercial production.

This forces Huawei to lower production targets and delay fulfilling orders for this chip.