NVIDIA CEO Jensen Hwang expressed concern that the “semiconductor war” the U.S. is waging against China could cause “great damage” to the U.S. technology industry.
In an interview with the Financial Times (FT), which was reported on the 24th, CEO Hwang appealed, “Silicon Valley’s technology companies are tied behind their backs due to the export control policy introduced by the Joe Biden administration.” “China is a very important market in the technology industry sector,” he said. “We can no longer sell high-tech semiconductor chips in one of the largest markets.”
The Biden administration has been implementing the “Semiconductor Support Act (CHIPS Act)” since August last year. Although it aims to foster its own semiconductor industry, its fundamental goal is to exclude China from the global semiconductor market.CEO Hwang said, “The semiconductor law will eventually be greatly humiliated.” “If U.S. technology companies’ production capacity (as a result of giving up the Chinese market) is reduced by a third than before, no one will need a U.S. factory,” he pointed out.”In theory, it is possible to produce chips outside Taiwan’s territory,” CEO Hwang said. “China can never be replaced as a source of parts and a sales market for final products.” Regarding the possibility of introducing additional regulations on China, Hwang warned, “We should think carefully.” “There is no alternative if the Chinese market is lost,” he said. “China is one.” There is no other China. “If we cannot trade with China, it will be a huge loss for U.S. companies,” he stressed.
It is also pointed out that China is developing its own chips to directly compete with market leaders such as NVIDIA. CEO Hwang said, “If they can’t buy it from the U.S., they (China) will make it (semiconductor chips) on their own,” adding, “That’s why the U.S. should be careful.”
Hwang is a Taiwanese-American. He has been working as CEO for 30 years since he founded Nvidia in Silicon Valley in 1993.
Chang Young Choi
US ASIA JOURNAL
