NEW YORK – The rivalry between the US and China is seemingly getting thicker every day, especially with the newly imposed exportation rules by the Biden-Harris administration banning chipmakers from shipping GPUs to China. The US government insists that the rules are in place to help establish control and prevent use of the components to make military advances, and not to run down China’s economy.
However, the impact of the exportation rules can already be felt as they already intercepted a $5 billion shipment headed to China from NVIDIA. While China has seemingly found a workaround for this with GPU recycling factories, NVIDIA’s CEO, Jensen Huang, recently indicated that the US could take up to two decades to gain full independence in chip manufacturing, according to a spot by Tom’s Hardware.
Huang’s statement is based on the fact that the trajectory of the chip manufacturing industry in the US isn’t vibrant, which is why he’s uncertain whether it’ll be able to crack the market.
While speaking at the New York Times’s DealBook conference in New York, Huang stated that “We are somewhere between a decade and two decades away from supply chain independence. It is not a really practical thing for a decade or two,” as spotted by Bloomberg.
In the interim, the US government has elaborate measures and policies to help ramp up its chip manufacturing efforts. According to Tom’s Hardware, the US government already has bipartisan support, which will go a long way in helping it develop more manufacturing facilities within its borders.
The US government’s keen interest and investment in the chip manufacturing industry is to help reduce its overreliance on external sources for chips. It will also help boost the economy while improving the national technology infrastructure.
The plan is already taking good shape with Intel, Samsung, and TSMC (all among the most profitable semiconductor chip brands in the world) having initiated the process of building advanced fabs in the US.
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