Jensen Huang claims U.S. chip export controls failed against China
- U.S. export controls have reduced Nvidia's China market share from 95% to 50%.
- Huang criticized the export policies, explaining they prompted China to accelerate domestic chip manufacturing.
- He warned that if the U.S. does not change its approach, it could jeopardize its market presence and competitive advantage.
In an address at Computex, an artificial intelligence exhibition in Taiwan, Jensen Huang, CEO of Nvidia, expressed that U.S. export controls aimed at restricting artificial intelligence chip sales to China have been ineffective. He articulated that these restrictions have resulted in Nvidia's market share in China plummeting from 95% to 50%. This decline is attributed to the forced transition of Chinese companies towards domestic semiconductor manufacturers such as Huawei, as well as a significant uptick in China's investments in its ability to create a self-sufficient semiconductor supply chain. Huang's remarks are particularly significant in the backdrop of the ongoing sensitive relationship between the United States and China regarding tariffs and semiconductor technology. His statements come on the heels of China urging the U.S. to reevaluate its measures, calling them discriminatory and unfavorable. The Nvidia head warned that unless the U.S. reassesses its strategy, the country could risk losing not only its foothold in the Chinese market but also its broader competitive edge in the global race for artificial intelligence. He characterized the situation as a technology cold war, wherein Nvidia finds itself straddling the political fault lines between two competing powers. Although Huang maintains strong ties with both American and Chinese officials, he has been vocal about the current policy's detrimental effects on U.S. businesses. Moreover, he emphasized the impressive advancements in technology that China has achieved, noting that they are rapidly catching up with the U.S. in areas critical to AI development. Huang also disclosed that the White House has abandoned the tiered AI Diffusion Rule previously established during President Joe Biden's administration, signaling a possible change in direction for U.S. export policies. As an industry leader, Nvidia must carefully navigate its operations to comply with U.S. laws while simultaneously catering to the growing demands of the Chinese market. Huang conveyed optimism regarding Nvidia's future collaboration and investments in China, reinforcing the notion that the competition in AI technology will be a long-term endeavor, given the urgency and continuous investments being made in this domain by both sides.