Actually lunatic Trump should be the one saying sorry to Jensen Huang and Nvidia for ending its good run to make more money from China. Nvidia is as good as PNG in China, Persona Non Grata. Its business with China has grinded to zero. The best chip maker, with the most advanced chips that every country wants, cannot sell a single chip to China, its former biggest customer. Billion dollars of profits just vanished from thin air. Nvidia is now faced with over capacity and an over flowing warehouse of H200 chips begging for customers.
And which joker to blame? No prizes for guessing right. China would be very happy to buy as many H200 chips as it could afford and Nvidia would be laughing to the banks. This is the cruelest joke lunatic Trump pulled on Nvidia. And Nvidia will not only report on lower profits, but may have to scale down production with retrenchment, and many high earning Americans will lose their jobs.
Clown Trump thinks he can switch on and switch off the sale of high end chips to China depending on whether he wets his diapers the right side or wrong side. China now has many serious questions and concerns about using Nvidia chips. Reliability of supplies, vicious kill switches or bugs embedded in the chips are serious issues that China cannot risk. The stakes are too high and pervasive. And why pay overpriced chips just because Trump added a 15% to the price for himself?
The bigger strategic decision, China needs to be totally independent and self sufficient in its own chip infrastructure, cannot be held hostage by the American manufacturers. The decision has been made, no more foreign chips. China will make and control its own chips that span across all industries and products and services, completely free from American control and coercion. Period.
Jensen Huang can kiss the Chinese market goodbye. He may want to start a joint manufacturing plant in China with Chinese participation, transparency, equity and control in the future. China will be fully decoupled from the Americans when chips are concerned.
Trump does not care a wee bit or would have sleepless night on the fate of Nvidia and its employees. He will continue to clown around and amuse himself as long as he is in the White House. China will not care who will be the next POTUS as it would not change anything. The hillbillies are hillbillies.
The damage to Nvidia and the chip manufacturing industries is as widespread and long lasting as the weaponising of the dollar. Trust is gone and will never return. The Washington clowns are really good in bringing down America in double quick time.
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.
ReplyDeleteTrying 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.
I do not think China is interested in the H200 chips. More than that, China can just see but cannot buy, so what is Jensen Huang doing in China?
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