The global semiconductor market shows the US leading in advanced AI chips, China dominating legacy integrated circuits, and East Asia controlling memory chips. China is also closing the gap in CPUs, intensifying competition and highlighting shifting regional specializations in the industry.
Reports indicate that several Chinese universities with close ties to the military have attempted to procure Nvidia's advanced H200 chips. Procurement records suggest at least seven universities, including members of the "National Defense Seven Universities," have sought these chips, raising concerns about US technology reaching the Chinese military.
Nvidia's CFO expressed uncertainty about generating revenue from China despite US license approvals for H200 shipments, as the company excludes China data center compute revenue from its outlook.
China has declined to purchase Nvidia's H200 AI chip, with President Trump confirming Beijing's desire to develop its own technology. Despite US Commerce Department clearance for Chinese firms to import the chip, a 25% fee and inspection clause remain sticking points.
Sen. Chris Coons pressed Commerce Secretary Howard Lutnick about Nvidia's H200 AI chip exports to China, citing contradictory statements. Lutnick said the US has not sold any H200 chips to Chinese companies, while Nvidia CEO Jensen Huang claimed in March that approvals were obtained from both governments. Coons expressed deep concern about national security risks and requested detailed information on licensed and shipped chips within a week.
US Commerce Secretary Howard Lutnick sought to quell fears in Senate testimony on Wednesday that American technology was aiding China’s military, but drew scepticism given the US president’s willingness to sell advanced semiconductors. Lutnick asserted before the powerful Senate Appropriations Committee that US President Donald Trump was striking a “delicate balance” on the technology transfer issue given his cordial personal relationship with Chinese leader Xi Jinping, claiming that China has...
