China in the process of making better chips than H200

The Huawei story did not register in the brains of the hillbillies. Sanctions against Huawei did not work, despite even rallying the doggies to do the same to Huawei. Huawei was to show the middle finger to the USA and its doggies by becoming even more self-sufficient and prospering. Huawei is now even making its own chips and EVs.

Trying to strangle China using Nvidia chips is exactly the same mistake being made by the USA against Huawei. When Trump refused to sell top end Nvidia chips to China, it just made China more determined to overcome the problem by attempting to make its own, now even intent on cutting off China's tech firms from using Nvidia chips. The message from the Chinese Government was clear enough, that if Chinese tech firms can find alternative domestically made chips, import of foreign chips will be curtailed. That message probably gave Jensen Huang sleepless nights.

Trump thought he was playing the winning card, trying to project a semblance of having the upper hand by giving permission to Nvidia to go ahead to sell H20 and H200 chips to China. China did not even take up the offer, excusing itself by citing its fear of backdoors in those chips, apart from other reasons. But the harm had already been done, and China has put in place restrictions to prevent Nvidia H20 and now H200 chips to be sold on the Chinese market. Nvidia can sell those chips to McDonalds, while Trump can add them to his bumper burger orders like potato chips.

Jensen Huang made a wasted trip to China. The market for Nvidia chips in China is gone for good. It is not temporary. It is permanent.


Anonymous