Nvidia chief executive Jensen Huang has said that the United States’ export controls on chips to China were “a failure,” as companies were turning to locally-developed .
“I think, all in all, the export control was a failure,” he said, underpinning that companies would use the “second best” option if they couldn’t get chips from the American AI leader.
US export controls boosting local supply chain
The have forced companies there to buy semiconductors from Chinese designers like Huawei.
The American action has also pushed China to aggressively invest and develop a supply chain that is not dependent on foreign manufacturers.
“The local companies are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development,” Huang said while addressing the media at a tech show in Taiwan.
Huang added that share of China’s AI chip market had plummeted to 50 percent from nearly 95 percent at the beginning of former president Joe Biden’s administration.
In recent years, the US has tried to rein in exports of sophisticated chips to China amid concerns that they could be used to advance the Asian giant’s military systems and also threaten American dominance in artificial intelligence.
US President administration rolled back some curbs last week, with countries complaining that they were being severed from key technology needed to develop AI.
Huang praised Trump’s approach to AI and said the president understood US companies were not the only providers of such technology.
“President Trump realises it’s exactly the wrong goal,” he said in reference to the prior rules.
China slams US chip warning
on Monday called on the US to “immediately correct its wrongdoings” and stop “discriminatory” measures after Washington gave guidance warning companies not to use advanced computer chips from China, including Huawei’s Ascend AI chips.
China’s commerce ministry said that the US move seriously undermined consensus reached at the high-level bilateral trade dialogue held in Geneva.
The ministry added it would take firm steps if Washington continues to “substantially” harm Beijing’s interests.
Edited by: Kieran Burke
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