Nvidia’s Jensen Huang, semiconductor experts think U.S. chip curbs failed

The replacement of Nvidia is a major challenge. Although Chinese competitors have years to the cutting -edge technology of the company, many analysts and initiated warn that they catch up, thanks to American export restrictions.

The restrictions of American chips on the sale of advanced semiconductor technology, in particular those used in artificial intelligence, have been deployed over several years, with the initial aim of slowing down the military advance of China and protecting American domination in the AI ​​industry.

However, according to Nvidia CEO Jensen Huang, export controls of American semiconductors on China, were “failure”, causing more damage to American companies than in China.

Although the objectives of reducing Chinese military access to advanced United States advanced technology and maintaining American leadership in AI seems to have had some success on paper, shortcomings and stocks of existing semiconductors in China have complicated these objectives, said Ray Wang, an independent analyst of technology and flea by emphasizing American-china competition.

“This is partly why we see a reduction in the gap between the capacities of the Chinese and the United States,” added Wang.

The leaders of Nvidia and other designers of American fleas have long pressure against flea checks while they fear losing lucrative trade agreements. Huang said at the annual Caltex Technology show in Taipei that the NVIDIa GPU market share increased to 50%, compared to 95% in the past four years.

Indeed, chip experts say that the borders create more harm than good for the United States

“The effects of controls are double. They have the impact of reducing the ability of American companies to access the Chinese market and, in turn, have accelerated national industry efforts to pursue greater innovation,” said Paul Triolo, partner and senior vice-president for China at DGA Group.

“You create competitors to your main companies at the same time as you cut them from a massive market in China,” he added.

While the most complete export controls in Washington were adopted during the mandate of former American president Joe Biden at the White House, Huawei and Smic, the largest Chinese flea manufacturer, return to Donald Trump’s first term.

On April 15, Nvidia revealed that new checks, which restore sales of its H20 graphic processing units in China, had led to $ 5.5 billion against its income.

Restrictions should be a Boon for the demand and development of local alternatives from Nvidia like Huawei, who works on his own AI chips. They also come in the context of Beijing mobilizing billions as part of its flea self -sufficiency campaign.

“The main thing is that the controls have prompted China to become self -sufficient in these supply chains in a way that they would never have considered before,” said Triolo.

Chinese achievements linked to AI, such as Deepseek’s R1 model and the news of the progress of Huawei fleas, have led observers to question the effectiveness of flea checks.

According to Wang, the independent analyst, the semiconductor and AI space in China has accelerated startups, market opportunities and AI talents alongside restrictions, which has clearly resulted in national innovations.

“I think the arguments that export controls accelerate innovation are quite valid,” said Wang.

Nivida’s Haung also noted these trends in April, telling Washington legislators that the country had made huge progress in recent years and is just behind the United States

The NVIDIA H20 chip was designed specifically to comply with existing flea command before the distribution of exports.

“We are not only talking about export control, we are talking about a series of export controls that come from all in 2019,” said Wang, noting that evolving policies have had two different objectives.

Meanwhile, in what Paul Trio of the DGA calls a “goal of goal posts”, it seems that the objectives of the restrictions have moved to the intention of slowing down and containing developments of Chinese AI and semiconductor.

“The continuous expansion of controls and the lack of articulation of what the clear end game is here, has really created a lot of problems and has created a lot of collateral damage,” said Trio, adding that he has led more people to question politics.

In a Declaration earlier this monthThe Foundation of Information and Innovation Technologies, an American reflection group which has received funding from various technological companies, said in an article that “the Biden administration control policy for IA fleas has been largely a failure from the first day. However, year after year, it has doubled, trying to connect various shortcomings”.

“While [the U.S. government] Certainly is right to prevent American companies from selling advanced AI technology to Chinese soldiers, the reduction of American companies from the entire Chinese commercial market is a worse remedy that the disease, “said Stephen Ezell from ITIF to CNBC in an email.

“American export controls cost Nvidia at least $ 15 billion in sales, and it is income that the company must be able to win to invest in future generations of innovation.”