Nvidia strengthens its position in China despite chip export restrictions due to U.S.-China tensions.
Nvidia CEO Jensen Huang is on an important visit to Beijing to strengthen cooperation with the Chinese government in the field of artificial intelligence amid tightening chip export regulations from the United States.
KEY CONTENT
Jensen Huang meets with senior Chinese officials to support AI development in the country.
Nvidia adjusts its business strategy with a new line of AI chips compliant with U.S. regulations.
The United States continues to tighten chip export controls in Southeast Asia, significantly impacting the global chip supply chain.
What is Nvidia doing to maintain market share against U.S. chip export restrictions?
CEO Jensen Huang firmly opposes U.S. chip export restriction policies, viewing them as a failed strategy that could accelerate the development of domestic competitors like Huawei. Nvidia is developing a new line of lower-power AI chips that meet export control requirements while still serving the potential Chinese market.
Chip export restriction policies are a failed strategy that harms U.S. innovation and industry while enabling Chinese competitors to grow faster.
Jensen Huang, CEO of Nvidia, 2024
In the last quarter, Nvidia is expected to lose about $8 billion in revenue due to U.S. sanctions. In response, the company is introducing AI chip products specifically for the Chinese market, expected to launch in 2024, to maintain a significant presence in the AI and data center sector here.
What is the significance of Jensen Huang's visit to Beijing in the current context?
Through his trip to Beijing to participate in the International Supply Chain Expo supported by the Chinese government, Jensen Huang expresses strong support for China's AI development goals and reaffirms his commitment to cooperating with Chinese tech companies despite increasingly difficult U.S. policy conditions.
He is expected to meet with senior officials, including the Chinese Minister of Commerce, to discuss cooperation and support for bilateral AI technology development.
How is the U.S. government tightening chip export controls and how does it affect Nvidia?
The U.S. government is not only limiting chip exports to China but also expanding its front to Southeast Asian countries like Malaysia and Thailand, aiming to prevent smuggling or illegal technology transfer related to advanced chips to China.
We are tightening control over transit points to prevent technology chain exploitation, protecting national security and the competitive position of the United States.
U.S. Department of Commerce official, 2024
This tightening presents significant challenges in the global chip supply chain, creating bottlenecks for corporations like Nvidia in terms of transportation and cooperation in Southeast Asia – a crucial intermediary between the U.S. and China.
How will the new wave of policies change Nvidia's strategy?
Due to the impact of restrictions, Nvidia is restructuring its supply chain and partnership strategy in Asia, while focusing on research and development of suitable performance chip lines to continue participating in the booming AI market in China.
Strategy Before Restrictions After Restrictions Type of Chip High-end AI Chip Low-power AI Chip, compliant with export controls Target Market Global, including China Focus on China and Southeast Asia Supply Chain Broad global links Adjust Southeast Asia penetration due to restrictions Government Relations Prioritize open cooperation Strengthen dialogue with the Chinese government
Frequently Asked Questions
How is Nvidia affected by U.S. export restrictions? Nvidia estimates a loss of about $8 billion in quarterly revenue due to these restrictions, and it must develop compliant chips to maintain its market in China. Why does Jensen Huang publicly oppose U.S. chip export policies? He believes the policy is counterproductive, undermining U.S. innovation and allowing Chinese companies to grow faster. What is the main purpose of Nvidia CEO's visit to China? To promote cooperation with the Chinese government and businesses, and strengthen its position in the AI field in this large market. How is the U.S. expanding chip export restrictions in Southeast Asia? The U.S. tightens chip export controls in Malaysia and Thailand to prevent illegal technology transfer to China. How is Nvidia coping with challenges in the chip supply chain? Adjusting supply chain strategy, developing low-power AI chips, while enhancing dialogue with relevant governments.
Source: https://tintucbitcoin.com/nvidia-ceo-den-bac-kinh-thuc-day-ai/
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