AI Chips

NVIDIA CEO Jensen Huang criticized U.S. AI chip export controls to China as a “failed strategy,” arguing they have spurred China’s semiconductor self-reliance while harming American firms. Speaking at COMPUTEX 2025, Huang noted Nvidia’s China market share dropped from 95% to 50% as local competitors emerged, with potential losses up to $15 billion from H20 chip restrictions. He warned Biden-era bans unintentionally accelerated China’s domestic R&D, with over half of global AI researchers now based there. The 2022 U.S. chipmaking equipment export ban drew backlash, with China condemning “unilateral bullying” harming global supply chains. Trump’s revocation of the “Intelligence Diffusion Rule” highlighted shifting market dynamics, underscoring policies that hinder innovation risk U.S. competitiveness.

The U.S. Congress introduced the bipartisan Chip Security Act this week, requiring advanced GPUs and AI chips exported to certain countries to include geolocation tracking tech. Exporters must report unauthorized diversions to China or other restricted destinations, threatening sanctions. The bill mandates enforcement standards within six months but lacks technical specifics, raising concerns over compliance costs and data privacy. As Chinese firms spend $12B annually on indirect chip purchases, critics warn the legislation may disrupt innovation and semiconductor trade dynamics while overstating control over global tech flows. (99 words)