US AI Export Restrictions on China Raise Supply Chain Concerns, Experts Say
18 April 2025 路 Uncategorized 路
The U.S. Department of Commerce has announced new export permit requirements targeting NVIDIA鈥檚 H20 and AMD鈥檚 MI308 chips, as well as similar artificial intelligence semiconductors for exports to China. Industry experts suggest this measure is likely ineffective and may accelerate self-sufficiency in China while potentially adversely affecting the short-term and long-term operations of NVIDIA (杓濋仈), AMD (瓒呭井), and their respective supply chains.
Liu Pei-jen, director of Taiwan Institute of Economic Research's Industrial Economics Database, noted that escalating trade tensions between the U.S. and China have prompted stricter controls on AI chip exports from the United States. Future export reviews for NVIDIA鈥檚 downgraded H20 (杓濋仈) and AMD鈥檚 MI308 chips to China will be stringent.
Anonymous industry experts argue this new regulation is misdirected, having little impact on China while simultaneously disadvantaging U.S.-based manufacturers like NVIDIA and AMD and complicating Sino-U.S. negotiations. These experts also noted that the H20 was initially designed for the Chinese market during a period when export regulations were less restrictive under the Biden administration.
Experts contend that viable alternatives already exist within China, such as Huawei鈥檚 Ascend 910B, which performs comparably to the H20 in terms of performance, and advancements by China Semiconductor Manufacturing International Corporation (涓姱) reaching production standards equivalent to those required for similar chips; this situation could further accelerate self-sufficiency efforts.
NVIDIA's recognition of a $5.5 billion expense resulting from these new regulations suggests they were unexpected, as the H20 was specifically tailored for the Chinese market with limited demand elsewhere and therefore carries significant financial implications.
Ultimately, while U.S. controls may negatively impact short-term operations and profitability for companies like NVIDIA and AMD along their supply chains, they also hinder long-term prospects by reinforcing China's push towards technological self-sufficiency.
(Writer: Chang Chien-Chung; Image of H200 sourced from NVIDIA)
Liu Pei-jen, director of Taiwan Institute of Economic Research's Industrial Economics Database, noted that escalating trade tensions between the U.S. and China have prompted stricter controls on AI chip exports from the United States. Future export reviews for NVIDIA鈥檚 downgraded H20 (杓濋仈) and AMD鈥檚 MI308 chips to China will be stringent.
Anonymous industry experts argue this new regulation is misdirected, having little impact on China while simultaneously disadvantaging U.S.-based manufacturers like NVIDIA and AMD and complicating Sino-U.S. negotiations. These experts also noted that the H20 was initially designed for the Chinese market during a period when export regulations were less restrictive under the Biden administration.
Experts contend that viable alternatives already exist within China, such as Huawei鈥檚 Ascend 910B, which performs comparably to the H20 in terms of performance, and advancements by China Semiconductor Manufacturing International Corporation (涓姱) reaching production standards equivalent to those required for similar chips; this situation could further accelerate self-sufficiency efforts.
NVIDIA's recognition of a $5.5 billion expense resulting from these new regulations suggests they were unexpected, as the H20 was specifically tailored for the Chinese market with limited demand elsewhere and therefore carries significant financial implications.
Ultimately, while U.S. controls may negatively impact short-term operations and profitability for companies like NVIDIA and AMD along their supply chains, they also hinder long-term prospects by reinforcing China's push towards technological self-sufficiency.
(Writer: Chang Chien-Chung; Image of H200 sourced from NVIDIA)