Efforts by the U.S. to curb China’s access to advanced semiconductor technology may be backfiring, according to Nvidia CEO Jensen Huang, who says export controls are doing more harm to American companies than to China.
Speaking at Computex in Taipei, Huang described the U.S. chip restrictions as “a failure,” noting that Nvidia’s market share in China has plunged from 95% to 50% over the past four years.
The original intent behind the restrictions—limiting China’s military access to cutting-edge AI chips and protecting U.S. dominance—has had limited effectiveness, analysts argue. China has leveraged loopholes, stockpiles, and accelerated domestic innovation to close the gap.
“That’s partly why we are seeing a closing of the gap between Chinese and U.S. AI capabilities,” said Ray Wang, an independent analyst focused on U.S.-China tech competition.
U.S. chipmakers, including Nvidia, have long lobbied against these restrictions, warning they could spark self-inflicted damage. A recent $5.5 billion revenue charge tied to new restrictions on Nvidia’s H20 GPUs highlights the economic stakes.
“You create competitors to your leading companies at the same time you’re cutting them off from a massive market in China,” said Paul Triolo, Partner at DGA Group.
While export controls ramped up under President Biden, early sanctions against firms like Huawei and SMIC began during Trump’s first term. Now, with Chinese firms aggressively investing in homegrown alternatives, the U.S. may be fueling the very competition it sought to suppress.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/nvidia-ceo-u-s-chip-controls-on-china-have-backfired-fueling-competition/