NvidiaThe company more closely related to the AI boom, once again is in the midst of the United States technological rivalry with China.
The actions of the chips manufacturer fell almost 7% in the negotiation after the company after the company revealed He could no longer export his H20 chips to Chinese customers. In presentation of valuesThe chips manufacturer said it would take a charge of $ 5.5 billion due to the export ban.
Export controls are now extended to NVIDIA H20 chip, AMD MI308 chip and its equivalents. AMD’s shares fell 7.6% after the market.
The actions of the Nvidia suppliers in Asia also fell into the negotiation on Wednesday. Taiwan Semiconductor Manufacturing Corporation fell 2.5%, while the SK Hynix memory manufacturer fell 3.9%.
Nvidia designed the H20 chip to comply with the previous Biden rules on chips exports to China. At its maximum Recent Profit ReportNvidia reported that it generated 13% of its income from customers that use China as a billing location, below 17% of the previous year. Analysts previously estimated that Nvidia sent $ 12 billion in H20 Chips to China in 2024.
Nvidia’s news helped send the most under Asia-Pacific markets below Wednesday. Hong Kong Hang Seng index fell fell around 1.9%, with the most affected technological firms. The markets in South Korea, Japan and Taiwan also fell.
Even so, analysts are not surprised that Washington continues to press Nvidia screws in the middle of an intensifier commercial war and technological rivalry with Beijing.
“The Nvidia chips trade with China and that of others has been in the sights of the United States government for some time,” says Marc Einstein, Japan Research Director for counterpoint investigation. He adds that Deepseek’s ability to take advantage of less powerful chips for high performance AI has raised alarms in the United States government.
Dan Iives of Wedbush Securities writes that Nvidia is a “key strategic asset” for the Trump administration, and that the White House wants to ensure that the company’s chips do not arrive in China in the middle of Trump’s commercial war.
But that could also place Nvidia at the negotiation center between China and the United States, if they happen. Chips controls are “part of the general commercial problems between the United States and China, and would probably be included in any commercial agreement that is reached,” says Einstein.
Trump’s movement also suggests that the most focused export controls of his predecessor against China’s technological sector are likely to continue, even when he points to China exports more widely.
Einstein believes that Nvidia will be able to ignore the recent prohibition of Trump chips, due to their strength outside the China market. However, he warns that export controls “will accelerate China’s desire from more sophisticated national semiconductors.”
China is quickly becoming a chip power, mainly with respect to “Inherited chips” less advanced. But the country is slowly progressing in its attempts to create more advanced chips on scale.
Huawei, which has been forbidden to buy advanced chips Since 2020, he showed that he could ignore the sanctions of the United States when he presented a premium smartphone with a processor manufactured nationally for the first time in 2023. The Chinese technological giant has expanded to AI chips; His ascend chips, which are destined to compete with processors carried out by Nvidia and AMD, are now being used in relation to Deepseek, the Chinese AI model that crushed Markets earlier this year.
Experts point out that the export controls of the United States are Driving more investments In Chinese technological self -sufficiency, since the chips industry is forced to learn how to make chips without access to semiconductors of USA and chip manufacturing tools.
“It is not realistic to wait for an advantage of more than a year or two, even with extremely aggressive export controls,” Gregory Allen, director of the Wadhwani AI AI CSIS center, wrote Earlier this year, referring to the gap between the United States and China in the development of AI.
Beijing is also Duplicating In your chips policy. Last year, officials dedicated another $ 47.5 billion to what is commonly known as the “Big Fund”, an initiative to develop the Chinese semiconductor sector.
This story was originally presented in Fortune.com
