Huawei Technologies Co. is currently facing obstacles in its development of advanced chips for artificial intelligence and smartphones due to US sanctions.

Huawei"s ability to compete with American technology, particularly in the field of high-performance computing, has been impacted by these restrictions.

The company is currently working on its next two Ascend processors, which are intended to rival Nvidia Corp."s leading accelerators. However, the design is limited to a 7-nanometer architecture, a technology that has been widely used for several years.

This limitation is a result of US-led measures that prevent Huawei"s chipmaking partners from acquiring cutting-edge extreme ultraviolet lithography systems from ASML Holding NV, further complicating its ambitions in the semiconductor space.