Tech industry leaders such as NVIDIA & Intel are now lobbying with the US government in an attempt to ease the intensity of trade sanctions and curbs placed on China.
NVIDIA, Intel & Qualcomm Now Depend On The US Government For Their Economic Future
The move comes after the announcement of the Biden government to place further sanctions on China, mainly targeting the rapidly growing artificial intelligence industry. Reuters report that CEOs from NVIDIA. Intel & Qualcomm met with a delegation of the US government involving Commerce Secretary Gina Raimondo, National Economic Council director Lael Brainard and National Security Council director Jake Sullivan.
Although there aren't many details on the specific meeting, all companies went with a single aim of preventing the US from imposing any additional measures that would tarnish their influence in "Chinese markets". Moreover, the SIA (Semiconductor Industry Association) has also expressed concerns about US policy, advising to "refrain from further restrictions" and to allow tech companies to continue business in one of the largest semiconductor markets. They made emphasis on dialogue to settle the situation.
Well, if the planned sanctions are implemented in China, things could go south for many companies relying on Chinese markets for their progress. Analysts have reported predicted a drop of 10% in NVIDIA's data center revenue if the US curbs are imposed. NVIDIA's A800 and H800 AI GPUs are selling like hotcakes in the region, with a recently reported price bump after the ban rumor started spreading in markets.
In addition, companies like Intel have also recently stepped into the region, unveiling its Habana Gaudi2 accelerators for AI & HPC to the Chinese market. Intel aims to capitalize on the AI "gold mine" with HPC partners such as Inspur, H3C, and X-Fusion. However, their plans may hinder if the US imposes harsh sanctions, which is why the companies are eying a joint effort to prevent such a decision.
The Chinese markets are now competitive, with the governments inclining towards in-house productions. A vital example is the emergence of XiSi N100, the first AI GPU from the Chinese company MetaX. The situation has become pivotal for tech behemoths like NVIDIA, where their economic progress is now directly linked with the US government's decision. Meanwhile, AMD's CEO is currently in Taiwan to strengthen their collaboration with supply partners but they might also share similar thoughts as the other industry giants. It will be interesting to see how things unfold in the future, especially after the recent meeting.
News Source: Tom's Hardware
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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