Control of exports of chips from the US to China is a failure, said the boss of NVIDIA

Capitol regulations in Washington, restricting China’s access to the latest computer chips needed for artificial intelligence, especially manufactured by NVIDIA, have only strengthened Chinese technology companies and are « failure ».

This was said by NVIDIA CEO, Jenson Huang, quoted by leading US media. At a technological conference in Taipei, Huang said that the US was enhanced by companies in China « the spirit, energy and government support » to accelerate development. « In general, export control was a failure. »

Change

Drastic restrictions on the export of the company’s most powerful chips appeared during the previous president, Joe Biden, in 2022.

In response, NVIDIA modifies one type of chip, making it less powerful so that it falls under government thresholds for performance. Last month, Nvidia revealed that US authorities demanded a license for future sales of these chips in China, forcing the company to bear a loss of $ 5.5 billion on the inventory it had already planned to sell. The US Department of Commerce, meanwhile, has confirmed that it will introduce new license rules for certain NVIDIA chips.

Huang’s comments followed the decision of Donald Trump’s administration to abandon the rules of Biden’s time, completely blocking the exports of such technologies to China. However, the first semiconductor restrictions were just from Trump’s first term. The second also has new, specific restrictions – such as a ban on selling specific high -tech products to dozens of new companies, mainly from China.

Recently, US administration has warned US business that if he uses Huaway chips, US law may occur.

Huaway’s chips, even with all the capabilities of the US company, work well enough to provide Chinese companies services with them to people and other companies. In recent months, the Beijing government has demanded that companies load their data centers mainly with chips manufactured in China.

Fears

On the day after the US government, an investigation was launched whether previous NVIDIA sales of China have violated its rules, Huang met with senior economic and commercial officials in Beijing. Nvidia also fears that any advantage of Huaway in China can be transferred to other markets and make the company more competitive worldwide.

Washington’s control over chip exports makes it increasingly difficult for NVIDIA to do business in China. The country has generated $ 17 billion from NVIDIA’s revenue in the last fiscal year, at least at least over a decade, according to Bernstein Research. Nvidia reported $ 130 billion in global revenue in the last fiscal year, an increase of 114 percent compared to the previous year.

This month, the US Department of Commerce said any person or company using Huaway artificial intelligence chips may disrupt US export control. Countries around the world are queuing up to buy NVIDIA chips, and Trump’s administration is positioned as a mediator in transactions.