Nvidia’s CEO, Jensen Huang, delivered crucial insights at The New York Times’ DealBook conference in New York, shedding light on the challenging path towards achieving semiconductor supply chain independence for the United States. According to Huang, the nation faces a formidable 10 to 20-year timeline due to the intricate nature of the task and the global interconnectivity of chip production.
Huang underscored the complexity by revealing that Nvidia’s products heavily rely on components sourced globally, dispelling the notion of exclusive dependency on Taiwan, where critical elements are manufactured. This revelation poses a potential hurdle for the Biden administration’s objective of reshoring chip-making industries to the US, despite bipartisan efforts and legislative initiatives.
Addressing concerns on national security, Huang acknowledged the US government’s export restrictions on Nvidia, emphasizing the delicate balance between business operations and security imperatives. Despite these challenges, major players in the semiconductor industry, including Taiwan Semiconductor Manufacturing Co (TSMC), Samsung Electronics, and Intel, are actively planning expansions in the US. Europe, too, is working towards bolstering local semiconductor manufacturing to reduce reliance on global supply chains.
Interestingly, despite export restrictions imposed by the US government, Huang reiterated Nvidia’s commitment to China. The company is actively developing products for the Chinese market that comply with US regulations, aiming to navigate the regulatory landscape without triggering restrictions.
However, Huang warned of unintended consequences arising from export restrictions, noting that approximately 50 Chinese companies are now developing technology to compete with Nvidia’s offerings. To address regulatory challenges, Nvidia is adapting by working on new chips that comply with the latest export restriction rules, with plans to resume business in China once regulatory compliance is achieved.
In navigating this intricate landscape, Huang emphasized the importance of striking a balance between conducting business with various entities and addressing national security concerns.
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(via)
