[Text/Watchman Network Qi Qian] On June 12 local time, Jensen Huang, CEO of NVIDIA, made two statements in one day to criticize the US chip export restrictions targeting China. Huang told a US media outlet that NVIDIA's sales to China have been severely affected, and he warned that if the chip export restrictions continue, Huawei will "cover the Chinese market" and extend to other countries around the world.

According to reports, Huang made the above remarks at a technology conference in Paris that day.

Huang told CNBC that US chip technology leads China. However, he pointed out: "If the US does not want to participate in the Chinese market, Huawei will cover the Chinese market and cover all other countries."

Huang said that it is crucial for the US to ensure that AI developers worldwide base their technology on the US technology stack (or technology layer) rather than on China's technology.

"If we want the US technology ecosystem to win globally, it would be unwise to give up 50% of global AI researchers...," Huang said. "As long as all AI developers are in China, you know, I think China's technology ecosystem will win." He added: "So we must pay attention to the long-term, unintended consequences of short-term actions."

Screenshot of Huang Rennong's warning on US chip export restrictions in Paris on the 12th.

Reportedly, this week, Huang has caused waves while attending events in several European countries. On September 9, he highly praised the UK in London, calling it one of the "richest AI communities in the world," and promised investment in the country. On the 12th, Huang talked about Europe's potential, particularly praising France for its potential to "export AI" alongside energy exports, and commended Europe as an independent market unaffected by various factors.

On the same day, Huang told CNN that due to the strict trade restrictions imposed by the US on chip sales to the Chinese market, NVIDIA will no longer include the Chinese market in its revenue and profit forecasts.

When asked whether the US would lift the export controls on China, Huang said he did not expect it. "But if it really happens, it will be a huge additional income. I've already told all our investors and shareholders that future forecasts will not include the Chinese market."

Huang reiterated his criticism of US chip export restrictions. He pointed out: "The goal of export controls has not yet been achieved. Therefore, I believe that all goals of export controls must be clear and tested over time."

NVIDIA chip diagram, US media.

As early as October 2022, the US government had already implemented a series of chip export restriction measures, which were continuously tightened to prevent US semiconductor giants like NVIDIA, AMD, and Intel from selling their most advanced chips in China, forcing these companies to find alternative solutions.

Previously, NVIDIA had developed custom H20 chips to comply with US export regulations for the Chinese market, which began accepting pre-orders in February last year. Data shows that in the fiscal year ending January 26, the Chinese market brought NVIDIA $17 billion in revenue, accounting for 13% of its total sales. Reuters cited sources saying that since January, NVIDIA has cumulatively received orders worth $18 billion for H20 chips.

Since taking office, the Trump administration has consistently promised to continue cracking down on US companies' AI chip exports to China. On April 15, the US halted the export of NVIDIA's H20 chips, AMD's MI308 chips, and similar AI chips to China under the pretext of "conforming to national and economic security interests." On May 9, there were reports that NVIDIA would downgrade its "special version" of chips for China and launch new ones about two months later.

Reuters pointed out that this caused NVIDIA's sales to plummet, resulting in a loss of $2.5 billion in the first quarter and an expected loss of $8 billion in the second quarter.

NVIDIA CEO Jensen Huang has consistently opposed restrictions on exports to China. In March, when asked about export controls to China, Huang pointed out that about half of the world's AI researchers come from China, many of whom work in US laboratories.

During his visit to China in April, Huang emphasized that NVIDIA will continue to optimize its product systems in compliance with regulatory requirements and remain steadfastly committed to serving the Chinese market. On April 30, Huang reiterated that he hoped the Trump administration would change its chip export rules, stating that the world has fundamentally changed and China is "not behind" in the field of artificial intelligence.

Recently, NVIDIA's chief scientist Bill Daly pointed out that the US AI export control ban has given China significant room for development; Chinese AI researchers who previously wrote programs for NVIDIA are now writing programs for Huawei.

CNBC once reminded that the strategic impact of the US新规 banning NVIDIA's "special version" chips for China far outweighs the financial impact. NVIDIA dominates the AI system semiconductor market, and sales of chips to China are crucial to its future. NVIDIA believes that if it exits the Chinese market, its chip sales business will be handed over to Huawei, an AI chip manufacturer, and Huawei will begin challenging its global sales share.

Patrick Moorhead, an analyst at technology consulting firm Moor Insights & Strategy, said: "This cuts off NVIDIA's access to a key market, and they will lose momentum in China. Ultimately, Chinese enterprises will turn to Huawei."

In February, Microsoft President Brad Smith also warned Trump not to continue the Biden administration's chip restrictions on China, or it would commit a "strategic error," causing allies to drift away from the US and turn to China. He wrote: "If this rule continues to spread, it will become a gift to China's rapidly expanding AI industry."

A Foreign Ministry spokesperson previously responded by pointing out that China has repeatedly expressed its firm stance on the US malicious blockade and suppression of China's semiconductor industry. The US politicizes, generalizes security issues, and instrumentalizes economic and technological issues, constantly increasing restrictions on China's chip exports and coercing others to suppress China's semiconductor industry. This behavior hinders the development of the global semiconductor industry and will ultimately backfire, harming both others and itself.

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Original source: https://www.toutiao.com/article/7515253876489044515/

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