German media: Trump bans NVIDIA chip exports to China, "side effects" benefit Chinese companies

Not only has Trump launched a tariff war against China, but the U.S. Commerce Department has also imposed further restrictions on NVIDIA chip exports to China. Sources said that as Chinese companies actively seek alternatives to Nvidia, major Chinese tech giants are also benefiting and may fill the gap left by Nvidia.

Can local Chinese companies compete with Nvidia?

Brady Wang, Deputy Director of market research center Counterpoint Research, told CNBC, "Multiple local Chinese companies are producing chips to compete with Nvidia." The news that Nvidia's chips cannot enter the Chinese market has motivated these competitors to develop further, and Brady Wang also expects an increase in demand for their products.

However, experts point out that U.S. export controls have also hindered China's ability to produce chips, preventing related companies from reaching the scale achieved by Nvidia through TSMC.

Phelix Lee, a stock analyst at Morningstar who focuses on semiconductors, noted, "Chinese companies have proven themselves to be competitive fabless semiconductor design companies... but they struggle to obtain sufficient supply from foundries."

Since TSMC's chip manufacturing equipment contains American technology, the company is also affected by U.S. export controls on Chinese companies and trade restrictions on exporting advanced chips to China. This has made Chinese companies increasingly dependent on domestic foundries in China, but domestic foundries in China are also subject to export controls and cannot access the most advanced chip manufacturing equipment.

At present, chip production is highly globalized, with high-bandwidth memory coming from South Korea, main chip production from Taiwan's TSMC, and hundreds of billions of chip manufacturing equipment from the United States, the Netherlands, and Japan.

In addition, semiconductor research firm SemiAnalysis also noted that Chinese companies have great potential for capacity growth.

Source: DW

Original article: https://www.toutiao.com/article/1830110525601884/

Disclaimer: The article represents the views of the author alone