Nvidia CEO Jensen Huang recently spoke at The New York Times' DealBook conference, providing insights into the challenges faced by the United States in achieving semiconductor supply chain independence. Huang highlighted the complexity of the task, stating that it could take anywhere from 10 to 20 years due to the global interconnectivity of chip production.
One of the key points Huang made was that Nvidia's products heavily rely on components sourced globally, dispelling the idea that the company has exclusive dependency on Taiwan, where critical elements are manufactured. This poses a potential obstacle for the Biden administration's goal of reshoring chip-making industries to the US, despite bipartisan efforts and legislative initiatives.
Huang also addressed concerns about national security, acknowledging the US government's export restrictions on Nvidia. He emphasized 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 is also working towards strengthening local semiconductor manufacturing to reduce reliance on global supply chains.
Interestingly, Huang reiterated Nvidia's commitment to China, despite the export restrictions imposed by the US government. 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. He noted that approximately 50 Chinese companies are now developing technology to compete with Nvidia's offerings. To address regulatory challenges, Nvidia is 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 complex landscape, Huang stressed the importance of finding a balance between conducting business with various entities and addressing national security concerns.
