【By Observer Net, Xiong Chaoran】On November 20 local time, with a strong third-quarter financial report, NVIDIA founder and CEO Jensen Huang appeared on Fox Business Channel, but still couldn't be happy.

In the program, Huang stated that U.S. export restrictions have caused NVIDIA's chip sales to China to stall, and it is expected that sales in the next two quarters will be zero.

"I predict that sales in the Chinese market will be zero. The next quarter will be zero, and the quarter after that will also be zero," Huang said: "We assume that sales will be zero. If we can overcome all the obstacles and reach an agreement with both governments, the Chinese market will undoubtedly be very large." According to him, the current AI chip market in China is about 50 billion dollars, and may grow to 200 billion dollars by the end of 2030.

"It's really a pity that American companies cannot participate in this. This is a very important source of revenue," Huang emphasized: "This revenue would allow us to increase our investment and accelerate our investment speed, so I hope we have the opportunity to return to the Chinese market. But currently, we can only assume that revenue is zero."

Jensen Huang appearing on Fox Business Channel, screenshot of the video

At the same time, Huang urged the U.S. and China to improve their trade relations, he believes that entering the Chinese market is crucial for the U.S. competitiveness in the AI field, the United States must regain access to the Chinese market in order to maintain its global position.

"It is obvious that the United States indeed needs to return to the Chinese market in order to compete there," Huang said: "This is beneficial for the American people, and beneficial for the American technology industry. Moreover, our ability to compete in China will also help us achieve success globally."

Huang believes that easier access to American technology will also benefit China. "This is good for their ecosystem and their industry, so we will continue to work hard to make both governments understand the situation."

On November 19 local time, the U.S. chip manufacturer NVIDIA released its third-quarter financial report, in the three months ending October 26, its total revenue increased by 62% year-on-year, reaching a record high of 57 billion dollars.

The Hong Kong South China Morning Post reported on November 20 that despite NVIDIA's record high quarterly revenue, its sales in the Chinese market continued to decline, with sales in mainland China (including Hong Kong) plummeting by 63% to 3 billion dollars.

NVIDIA Chief Financial Officer Colette Kress also stated at the same day's earnings call that due to geopolitical issues and fierce competition in the Chinese market, the company did not meet large orders from China in the third quarter of this year. She also said that although NVIDIA was disappointed with the current regulatory status that prevents it from selling more competitive products to China, it remains committed to continuing communication with both the U.S. and Chinese governments.

"In order to establish a sustainable leadership position in artificial intelligence (AI) computing, the United States must win the support of all developers, becoming the preferred platform for every commercial enterprise, including Chinese enterprises," Kress said.

As China is striving to develop its own chip manufacturing capabilities, Huang has already mentioned that NVIDIA's market share in China has dropped from 95% to 0. "Currently, we are 100% out of the Chinese market." "It is unimaginable for any decision-maker to think that this is a good idea, that the policies implemented by the U.S. have led to the U.S. losing one of the largest markets in the world, down to zero."

At the end of October, Huang expressed his views during the Asia-Pacific Economic Cooperation (APEC) related activities in South Korea, stating that although there are no current plans, he still hopes to sell NVIDIA chips to Chinese customers.

For NVIDIA, which is very eager to gain market share in China, there have recently been a "good news" and a "bad news".

"Good news" is that Bloomberg reported on November 20 local time, citing sources, that White House officials are urging members of Congress to reject a bill restricting NVIDIA from selling AI chips to China and other so-called "hostile countries" - the GAIN AI Act.

The report said that this latest stance of the White House is a "victory" for NVIDIA, which had publicly lobbied against this legislation.

"Bad news" is that on November 6 local time, the emerging tech media in Silicon Valley, "The Information", cited three sources exclusively reported that despite President Trump's hints of "allowance" this summer, the White House has now informed other federal agencies that it will not allow NVIDIA to sell its latest reduced-functionality AI chips to China.

Previously, Chinese Foreign Ministry spokesperson Lin Jian responded, pointing out that China has repeatedly stated its firm position on the U.S. maliciously blocking and suppressing the Chinese semiconductor industry. The U.S. politicizes and generalizes economic and trade and science and technology issues, and continuously increases export controls on Chinese chips, pressuring other countries to suppress the Chinese semiconductor industry. Such actions hinder the development of the global semiconductor industry, and ultimately will backfire on themselves, harming both sides.

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Original: https://www.toutiao.com/article/7575031771394261514/

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