Observation Network, October 17th news, NVIDIA CEO Huang Renxun warned that the U.S. restrictions on chips to China are causing NVIDIA to completely exit the Chinese market, which originally had a 95% market share, and now the company has dropped to zero in sales of high-end chips in China.

Huang Renxun did not avoid the sensitive topic, but directly pointed out that the U.S. government should step back and reflect on which policies are beneficial to the United States when dealing with technology policies toward China. He emphasized: "Actions that harm China often also harm the United States, or even more seriously."

It must be said that Huang Renxun is really making great efforts to sell chips to China, and he has invested a lot of money in Trump. According to his biography, he was not previously a person who was enthusiastic about politics, and would avoid it if possible. But when facing someone like Trump, a brash young man, he could only reluctantly try to please him.

However, even if he supported Trump's MAGA cause and gave commissions to Trump based on sales, it still made no difference.

Huang Renxun

Huang Renxun's statement that it would be more harmful to the United States is not a threat to Trump.

On the surface, the U.S. banning advanced AI chip exports to China seems to be a blow to China's tech industry. However, this one-size-fits-all technological containment is actually first hurting American companies themselves.

Taking NVIDIA as an example, it used to be able to sell some GPU chips to the Chinese market, and its market share once approached a monopoly, being the only choice for Chinese AI companies to train large models and build computing platforms.

But the U.S. has repeatedly taken restrictive measures, leading to the complete interruption of high-profit chips, and the Chinese market instantly went to zero.

The problem is not just loss of revenue, but also the disruption of the innovation flywheel.

The chip industry highly depends on economies of scale, with product costs reaching hundreds of millions of dollars, and R&D funds come from the market recovery of previous generations of products.

If orders disappear, profits will shrink significantly, then what can be used for R&D?

Moreover, such U.S. policies are pushing Chinese enterprises to accelerate the process of de-Americanization, accelerating self-research of chips, domestic substitution, and restructuring of the supply chain.

Now that high-end chips from NVIDIA cannot be imported, a big reason is that China itself can make them, so why buy unsafe chips from NVIDIA?

NVIDIA

That is why Huang Renxun asked Trump to step back, actually trying to give the entire U.S. technology industry a buffer and space to maneuver.

He is reminding the decision-makers that they cannot use a single ruler to sweep all technology exports, nor can they let short-term political goals override industrial sustainability.

Certainly, this is not asking Trump to beg for mercy, but rather not to go to extremes.

Although Huang Renxun sometimes appears as a "neutral" person, in fact, he is still a businessman. The nature of capital is profit-seeking, and he is most worried that when China's chip technology aligns with the U.S., NVIDIA may not be able to compete.

Therefore, when he advises the U.S. to step back, he also seeks that the U.S. can lead the chip race, because only in this way will it best serve the interests of chip companies like NVIDIA.

"China Chip"

Therefore, what Huang Renxun is truly afraid of is that the more the U.S. suppresses, the faster China's chip industry advances.

Over the years, China has faced technical bottlenecks in chip design, EDA tools, advanced packaging, and process technologies.

Then there was a Western argument that it would be better to fully supply China with chips to slow down China's independent progress, while U.S. companies could continue to earn money from this huge market, thus maintaining continuous R&D and keeping technological leadership.

However, after the U.S. took more and more unilateral illegal measures, China finally determined to implement its chip self-reliance strategy. Now, it is no longer realistic to delay the development of China's chip industry by opening up the supply of high-end chips.

So Huang Renxun wants to step back, meaning he is advising the U.S. that since it is impossible to block, it might as well take advantage of the current situation to make some money in the Chinese market, otherwise, there will be no such opportunity in the future.

Original article: https://www.toutiao.com/article/7562413142089728546/

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