Efforts by US authorities to gain sovereignty in the supply of semiconductor components will bear fruit over a period of ten to twenty years, according to permanent head and founder of NVIDIA Jensen Huang. At the same time, sanctions against China are creating dozens of potential competitors for NVIDIA.
As explained Bloombergthe company’s CEO made his statements at the DealBook conference, held under the auspices of the business publication The New York Times in NYC. According to Huang, NVIDIA’s own electronics products contain a variety of components sourced from various parts of the world, not just Taiwan, where the most critical components are manufactured. “We are now ten or twenty years away from chip supply independence” – said the founder of NVIDIA. According to him, the USA will only be able to achieve practical independence in this area in ten to twenty years.
Notably, NVIDIA CFO Colette Kress this week mentioned TSMC’s Arizona factory as a likely “third party contractor” for the brand’s GPUs. In fact, NVIDIA now orders the production of chips from TSMC and Samsung, but these are Asian companies of both companies, so the management of the latter considers the start of production of components for NVIDIA’s needs in the USA as a new stage of cooperation with the same TSMC . To the moderator UBS eventsIn which this dialogue took place, no direct answer could be obtained from Colette Kress to the question about the possibility of producing NVIDIA chips in Intel factories.
Both NVIDIA representatives confirmed this week that the company is preparing to release new computing accelerators for China that would take into account existing export controls that were updated in October. “We try to do business with everyone we can. On the other hand, our national security is important. “The competitiveness of our country is important,” – said the head of NVIDIA, referring to the United States. The company’s CFO noted at the UBS event that it will take some time for NVIDIA to offer new accelerators to Chinese customers, but they will definitely appear at some point. Ideally, the company would like to deliver accelerators to China with such performance that no export permits from the US authorities are required.
The NVIDIA founder also warned of the consequences of US sanctions. In his opinion, the restrictions create competitors for NVIDIA in China. At least 50 companies in the Middle Kingdom are now developing technologies that can compete with the proposals from NVIDIA itself.