StartupTalky

Tag: semiconductor chips

  • Intel Begins Production of Panther Lake Chips Promising 50% Performance Boost

    With its latest processors now in production, Intel is taking a bold gamble by predicting that graphics chips, not dedicated neural engines, will be the key to AI computing in the future. The company’s most aggressive performance boost in years, the Core Ultra series 3, codenamed Panther Lake, represents a fundamental shift from the way all other chipmakers are addressing artificial intelligence.

    Intel’s new Panther Lake chips demonstrate more than 50% performance gains in both processing and graphics when compared to current models, doubling down on a contentious approach: delivering AI power through graphics chips rather than specialised neural engines.

    Panther Lake Runs on Intel’s 18A Process

    Panther Lake is powered by Intel’s 18A process, which was the first 2-nanometre technology created and produced in the United States. This week, Panther Lake began production at Chandler, Arizona’s Fab 52. RibbonFET transistors and a modified power delivery mechanism that channels energy via the backside of the device allow the new architecture to fit 30% more transistors onto each chip while using 15% less power.

     As part of Intel’s $100 billion wager on homegrown manufacturing, CEO Lip-Bu Tan presented the milestone as essential to the future of American tech leadership. The company’s sixth sizeable Arizona location is Fab 52 in Chandler.

    Intel Following Different Path Compared to its Competitors

    Neural processing units are the focus of every chipmaker, but Intel took a different approach. The new Xe 3 graphics architecture from the business can perform 120 trillion operations per second for AI activities, which is almost twice as fast as the previous generation. The NPU crept from 48 to 50 TOPS with little movement.

    The first goods will be released in January 2026, and Panther Lake will power everything from industrial robots to laptops. Using the same 2-nanometre manufacturing technique, Intel is also producing a 288-core server chip called Clearwater Forest, which will be released the following year.

    Quick
    Shots

    •Intel starts production of its Panther Lake (Core
    Ultra 3) chips, marking a major leap in AI computing.

    •Promises over 50% performance gains in processing
    and graphics vs current models.

    •Runs on Intel’s 18A process, the first 2nm tech
    made in the U.S., built at Fab 52 in Chandler, Arizona.

    •30% more transistors and 15% lower power
    consumption with RibbonFET and backside power delivery design.

    •Intel bets on GPUs for AI acceleration instead of
    neural processing units (NPUs).

    •Xe 3 graphics architecture delivers up to 120 TOPS,
    nearly 2x faster AI performance than before.

  • OpenAI Teams Up with AMD in Landmark Deal to Expand AI Computing Power

    Nvidia’s market dominance will be challenged by the five-year agreement as OpenAI prepares to implement AMD’s new MI450 chips. OpenAI CEO Sam Altman and Advanced Micro Devices CEO Lisa Su during a hearing of the Senate Commerce, Science, and Transportation Committee in Washington in May.

    In one of the most direct challenges to industry leader Nvidia to date, OpenAI and chip designer Advanced Micro Devices announced a multibillion-dollar collaboration to work together on AI data centres that will run on AMD processors. As per the agreement, OpenAI agreed to buy six gigawatts of AMD CPUs, beginning with the MI450 chip the following year.

    The manufacturer of ChatGPT will purchase the chips directly or via its partners in cloud computing. In an interview on Sunday, Lisa Su, the head of AMD, stated that the deal will generate tens of billions of dollars in new revenue for the chip company over the next five years. AMD stated that the proposal costs tens of billions of dollars per gigawatt of computing capacity, while the two companies did not reveal the estimated total cost.

    AMD’s Biggest Deal Till Now

    The agreement is AMD’s largest victory in its attempt to challenge Nvidia’s hegemony in the AI chip market. AMD hasn’t had much of an impact on the rapidly expanding market for the more expensive supercomputing chips required by sophisticated AI systems, despite the fact that its processors are extensively used for gaming, in personal computers, and in conventional data centre servers. Inference functions—the calculations that enable AI applications like chatbots to reply to user enquiries—will be performed by OpenAI using AMD CPUs.

    In a joint interview with Su, OpenAI Chief Executive Sam Altman stated that the demand for inference computing has increased dramatically as the abundance of huge language models and other tools has increased. In a joint interview with Su, Altman stated, “It’s hard to overstate how difficult it’s become” to get enough computing power. “It takes some time, but we want it rapidly, he added.

    According to the two CEOs, the agreement will unite their businesses and provide them with incentives to invest in the AI infrastructure growth. Both businesses benefit, according to Su, who added, “I’m glad that OpenAI’s incentives are tied to AMD’s success and vice versa.”

    Nvidia to Face Tougher Challenges in Future

    Although Nvidia is still the chip of choice for AI businesses, it is up against competition from nearly every industry segment. AI chips are designed and sold by cloud giants like Google and Amazon, while OpenAI recently inked a $10 billion agreement with Broadcom to develop its own proprietary chip.

    Next year, Nvidia will release its eagerly awaited Vera Rubin processor, which is expected to be more than twice as powerful as its current iteration, the Grace Blackwell. In the second half of next year, OpenAI will start running its AI models on a 1-gigawatt MI450 chip.

    Altman stated that as demand for AI services—as well as the associated processing and infrastructure requirements—is expected to greatly exceed supply, the future of many businesses will become more intertwined.

    Quick
    Shots

    •OpenAI and AMD sign a five-year multibillion-dollar
    deal.

    •Build AI data centers powered by AMD chips to
    challenge Nvidia.

    •AMD’s upcoming MI450 chip, launching next year.

    •OpenAI to acquire 6 gigawatts of AMD CPUs.

  • India Invests $18 Billion to Build Semiconductor Manufacturing Powerhouse

    Given the intense competition and its late entry into the race to produce the most cutting-edge chips, India’s chances of becoming a big player in the global chip industry are slim. A worldwide competition for semiconductor self-reliance started in 2022 when the United States limited exports of its sophisticated AI chips to China in an effort to limit Beijing’s access to cutting-edge technology.

    It presented an opportunity for India, which aims to diversify its electronics industry away from China, secure chips for vital industries, and lessen its reliance on imports. Despite being one of the biggest electronics users in the world, India has no domestic chip manufacturing and contributes very little to the global supply chain.

    The “Semiconductor Mission” in New Delhi seeks to alter that. The goal is audacious. It seeks to establish a whole supply chain in India, including design, manufacturing, testing, and packaging.

    India has Approve 10 Semiconductor Projects Till Now

    Ten semiconductor projects totalling 1.6 trillion rupees ($18.2 billion) in investment have been approved by the nation as of this month. These consist of many testing and packing facilities as well as two semiconductor production facilities. Global chip design businesses currently utilise a reservoir of engineering talent from India.

    However, experts claim that the talent pool and investments are insufficient to realise India’s chip aspirations and that progress has been uneven thus far. India needs a large number of fabs or ATP facilities, or “shiny objects”. As the vice president for global innovation policy at the Information Technology and Innovation Foundation, a think tank focused on science and technology policy, Stephen Ezell stated that India requires a dynamic, deep, and long-term ecosystem.

    Leading semiconductor manufacturers, according to Ezell, take into account “as many as 500 discrete factors” before making multibillion-dollar fab investments. India needs to improve in a number of sectors, including talent, taxation, commerce, technological policy, labour rates, regulations, and customs rules.

    Indian Govt Adding New Element to its Chip Ambition

    The Indian government expanded its chip goal in May by implementing a plan to boost the production of electronic components, which would alleviate a significant bottleneck. Since there are so few companies in India that manufacture electronic components, such as phone cameras, chipmakers have not yet seen any local market for their product.

    However, by providing financial assistance to businesses that manufacture active and passive electronic components, the new strategy opens up a possible domestic buyer-supplier base that chip makers can access. The nation also changed course in 2022 from offering better incentives to manufacturing facilities producing chips with a size of 28 nm or less.

    The smaller the chip, the better the performance and the more energy-efficient it is. By cramming more transistors into the same area, these chips can be utilised in cutting-edge technologies like quantum computing and superior artificial intelligence.

    Quick
    Shots

    •India is a major electronics consumer
    but has no domestic chip fabs.

    •U.S.–China chip war since 2022
    created opportunities for India.

    •India aims to build full supply
    chain—design, fabs, testing, packaging.

    •India needs for a large, long-term
    ecosystem with investment in fabs/ATPs.

  • Nvidia Invests $5 Bn in Intel, Seals Chip Partnership to Strengthen AI and Semiconductor Edge

    Just weeks after the White House negotiated an unprecedented agreement for the U.S. government to acquire a significant share in the company, Nvidia announced on September 18 that it will invest $5 billion in Intel (INTC.O) and create a new tab, lending its weight to the faltering U.S. chipmaker. Once fresh shares are issued to finalise the deal, the investment will immediately make Nvidia one of Intel’s major shareholders, holding at least 4% of the business.

    After years of unsuccessful turnaround attempts at the renowned American manufacturer, Nvidia’s assistance opened up a new avenue for Intel and caused a 30% increase in the struggling chipmaker’s shares in premarket trading. In March, the business, which was formerly the leader of the semiconductor industry and was said to have placed the “silicon” in Silicon Valley, named Lip-Bu Tan as its new CEO.

     American elected officials, including President Trump, criticised him and demanded his resignation because of his ties to China. After a hastily scheduled meeting in Washington, Intel made the unprecedented decision to grant the US a 10% share in the business.

    What Nvidia and Intel Partnership will Offer?

    Although the agreement calls for Intel and Nvidia to work together to build PC and data centre chips, it is important to note that Intel’s contract manufacturing company—referred to as a “foundry” in the chip industry—will not be producing chips for Nvidia.

    According to the majority of analysts, Intel’s foundry would eventually need to acquire a major client like Nvidia, Apple, Qualcomm, or Broadcom in order to survive. In a statement, Nvidia, whose essential processors are driving a global surge in artificial intelligence, said it would buy Intel common stock for $23.28 a share, which is marginally less than the $24.90 closing price of Intel shares on 17 September.

    That is more expensive than the $20.47 per share price that the US government paid last month for an unprecedented 10% interest in Intel. Taiwan’s TSMC may be at risk as a result of the agreement. Currently, TSMC produces the flagship CPUs for Nvidia, a business that the most valuable corporation in the world may eventually expand to Intel. With Nvidia’s support, AMD, which rivals Intel for data centre chip supply, also stands to lose.

    What this Deal Means to Intel?

    After announcing a $2 billion investment from Softbank and receiving $5.7 billion from the U.S. government, Intel has a rising capital reserve that this deal adds to. At a Deutsche Bank conference last month, Intel’s chief financial officer, David Zinsner, assured investors that the company was in a “good cash position” and would not need much more funding until it saw substantial demand for 14A, a next-generation manufacturing process that it anticipates investing heavily in developing.

    CEO Tan has promised to keep Intel’s operations minimal and only increase production capacity when demand requires it. As part of the planned agreement, Nvidia would package its AI chips, or GPUs, with specialised data centre central processors designed by Intel. The Intel and Nvidia CPUs will be able to communicate more quickly thanks to a proprietary Nvidia technique. Since numerous chips must be connected in order for them to function as a single unit in order to process enormous volumes of data, fast connectivity is a crucial differentiation in the AI business.

    Since Nvidia’s top-selling AI servers with those fast links are currently only available with Nvidia’s own CPUs, the agreement would place Intel on an even playing field and allow it to profit from each Nvidia server.

    Quick
    Shots

    •Intel shares jumped 30% in premarket
    trading following the announcement.

    •Nvidia and Intel to co-develop PC and
    data centre chips but not use Intel’s foundry for Nvidia GPUs.

    •Deal strengthens Intel’s AI
    positioning and challenges Taiwan’s TSMC dominance.

    •Partnership could pressure AMD and
    TSMC while boosting Intel’s relevance in AI servers.

  • Ashwini Vaishnaw Confirms India’s First Commercial-Scale Silicon Fab

    In an X post, the minister stated that five assembly, testing, marking, and packaging units, one fab, and six semiconductor units are in varying phases of planning, building, and operation. Last week, four more were approved: three ATMP, including the most advanced packaging unit, and one silicon carbide fab. The whole ecosystem is developing in Bharat, including design, manufacturing, packaging, machinery, chemicals, and gases.

    Lam Research & Applied Materials Strengthen India’s Chip Supply Chain

    He noted that major equipment makers Lam Research and Applied Materials are establishing design, production, and validation facilities in the nation. Wafers are thin, circular slices of crystalline semiconductor material, usually silicon, used in the fabrication of integrated circuits. The majority of silicon fabs typically produce between 20,000 and 40,000 wafer starts each month.

    India’s Chipmaking Roadmap and ISM Projects Worth INR 4,584 Cr

    A few days after the Union Cabinet approved four projects under the India Semiconductor Mission (ISM) with a combined expenditure of INR 4,584 Cr, Ashwini Vaishnaw made remarks regarding India’s chipmaking agenda. There will be two projects in Odisha and one each in Andhra Pradesh and Punjab.

    The minister established two brand-new, cutting-edge design hubs in Noida and Bengaluru earlier in May to strengthen India’s semiconductor capabilities, from testing to architecture. The first phase of the Indian government’s semiconductor mission, which aims to make the nation a global centre for electronics design and manufacturing, was initiated in 2022.

    Government Incentives Driving Semiconductor Growth in Bharat

    This occurred a year after the government introduced the Semicon India initiative, which provided INR 76,000 Cr in incentives for producers of silicon semiconductors, display semiconductors, compound semiconductors, and other products. To improve India’s semiconductor industry, more than five units have been approved under the ISM; these are anticipated to draw INR 1.52 Lakh Cr in total investment.

    Leadership Change: Amitesh Kumar Sinha Appointed CEO of ISM

    In April of this year, Amitesh Kumar Sinha was appointed as the new CEO of the India Semiconductor Mission. This came weeks after it was reported that the union government was considering “supporting” chip design projects in the nation and semiconductor packaging designs in addition to internally discussing plans for the second phase of the ISM’s rollout.

    The domestic semiconductor market is the foundation of all of these developments and is anticipated to represent a $150 billion opportunity by 2030, according to a number of media reports.

    Quick
    Shots

    •Four new projects sanctioned — three
    ATMP (incl. advanced packaging) and one silicon carbide fab.

    •Full value chain developing in India
    — design, manufacturing, packaging, machinery, chemicals, and gases.

    •Lam Research and Applied Materials
    setting up design, production, and validation facilities in India.

    •Typical silicon fabs produce
    20,000–40,000 wafer starts per month.

  • Nvidia and AMD Agree to 15% China Chip Sales Levy to US Government Amid Trade Tensions

    According to an insider who spoke to the BBC, chip giants Nvidia and AMD have agreed to give the US government 15% of their sales of semiconductors in China. The contract is a component of an agreement to obtain export licences to the second-largest economy in the world.

    Financial Impact on Semiconductor Leaders

    Nvidia informed the BBC that it will abide by the regulations put forth by the US government in order to participate in global markets. Nvidia expects that export control laws will let America compete in China and around the world, even if it hasn’t exported H20 to China in months.

    Nvidia also stated in a statement to the BBC that America cannot lose its position as the leader in telecommunications by replicating 5G. If Nvidia races, America’s [artificial intelligence] tech stack might become the norm globally.

    H20 and MI308 Chips in the Chinese Market

    According to the agreement, AMD will provide the US government the same percentage of its MI308 chip income as Nvidia will from its H20 chip sales in China, as first reported by the Financial Times. “Unprecedented” is how Charlie Dai, vice president and chief analyst at the international research firm Forrester, described this deal.

    The agreement, he continued, highlights the steep price of market access in the face of growing tech trade disputes, putting significant financial strain and strategic uncertainty on tech providers. Nvidia recently declared that it will remove a previous prohibition by Washington on the sale of its H20 chips to Beijing due to security concerns.

    Applications for artificial intelligence (AI) make use of these potent devices. “You either have a national security problem or you don’t,” stated Deborah Elms, the Hinrich Foundation’s head of trade policy. “If you have a 15% payment, it doesn’t somehow eliminate the national security issue,” Ms Elms stated to the BBC.

    Following the Biden administration’s 2023 imposition of US export restrictions, the H20 chip was created especially for the Chinese market. In April of this year, the Trump administration essentially outlawed its sale. Jensen Huang, the CEO of Nvidia, has been pleading with both parties for months to resume selling the chips in China.

    U.S.–China Trade War: A Temporary Truce?

    Last week, he reportedly met with US President Donald Trump. Chip sales to China have resumed at a time when trade tensions between Washington and Beijing have been decreasing. The US has removed limitations on chip design software companies that operate in China, while Beijing has loosened controls on exports of rare earth elements.

    The two largest economies in the world reached a 90-day truce in their tariff war in May. Top trade officials from both sides have since met several times, but there has been no confirmation of an agreement to prolong the tariff truce before the deadline of August 12.

    Quick
    Shots

    •Nvidia
    and AMD to give 15% of China semiconductor sales revenue to the U.S.
    government.

    •Part
    of an agreement to secure export licences for sales in China.

    •Agreement
    follows U.S.–China tech trade tensions and export restrictions.

  • TSMC Fires Employees Over Trade Secret Leak Scandal

    Taiwan Semiconductor Manufacturing Co. reported on 5 August that it has found possible trade secret leaks as a result of “unauthorised activities”. The largest semiconductor maker in the world informed CNBC that it has initiated legal action and taken “strict” disciplinary action against the concerned staff.

    According to the corporation, TSMC has a zero-tolerance policy for any behaviour that jeopardises trade secret protection or jeopardises the interests of the business.

    It went on to say that such infractions are strictly dealt with and prosecuted to the maximum extent of the law. The company will continue to be dedicated to protecting both its fundamental competitiveness and the interests of all of its employees.

    Semiconductor Espionage on the Rise Amid AI Boom

    Since semiconductors are now the mainstay of the explosion in artificial intelligence models and applications, their strategic significance has increased recently. The competitive technology advantages of large semiconductor supply chain companies like TSMC and other leaders across the board have come into sharper focus due to rising geopolitical concerns.

    Major computer companies like Apple and Nvidia are customers of Taiwan-based TSMC, which leads the market for producing the most cutting-edge processors in the world. The company stated that TSMC is unable to provide more details because the case is currently undergoing judicial review. According to the company, TSMC’s “comprehensive and robust monitoring mechanisms” allowed it to identify the problem early and conduct prompt internal investigations.

    2nm Chip Development at the Heart of the Leak?

    Numerous former TSMC employees are suspected of trying to get crucial private information on the development and production of 2-nanometre chips while they were still employed by the business, according to a report published by Nikkei Asia on 5 August, which cited numerous people with knowledge of the situation. One of the most advanced manufacturing techniques in the semiconductor industry at the moment is the creation of the 2-nanometre chip.

    History of Trade Secret Breaches in the Chip Industry

    Being the top chipmaker in the world, TSMC possesses a wealth of intellectual property. The business has claimed in the past that it had over 200,000 trade secrets stored in its internal system.

    TSMC has been the victim of possible theft on previous occasions. A former employee was charged by a Taiwanese court in 2018 with copying trade secrets pertaining to the 28-nanometre fabrication process with the intention of transferring them to a mainland Chinese semiconductor company.

    ASML, a manufacturer of the equipment needed to produce the most sophisticated chips, reported in 2023 that it had found evidence of data theft involving their unique information by a former employee in China.

  • Tesla-Samsung $16.5B Chip Deal Confirmed: Musk Reveals Game-Changing Partnership

    According to reports, Tesla and Samsung Electronics have inked a significant chip supply agreement valued at $16.5 billion through 2033. The action is intended to help Samsung’s faltering contract chip manufacturing division, which is up against fierce competition from TSMC.

    Inside the $16.5 Billion Agreement: What We Know So Far

    In the midst of trade negotiations, analysts say the agreement might lower losses and improve South Korea-US tech ties. Elon Musk, the CEO of Tesla, announced on 28 July that the US automaker has agreed to purchase semiconductors from Samsung Electronics. This agreement is anticipated to support the South Korean tech giant’s struggling contract manufacturing division.

    Unnaming the customer, Samsung revealed on 26 July that it had signed a $16.5 billion chip supply agreement with a significant international corporation. It stated that the client had asked for confidentiality on the specifics of the agreement, which is set to expire in 2033. Reuters was informed by three people with knowledge of the situation that Tesla was the buyer of the deal.

    Why the Deal Matters for Samsung’s Foundry Division?

    Samsung is currently experiencing increasing pressure in the artificial intelligence chip manufacturing industry, as it is lagging behind competitors like TSMC and SK Hynix. This agreement is in response to this pressure. Its earnings and stock price have suffered greatly as a result of this delay.

    Through its foundry division, Samsung, the leading memory chip manufacturer in the world, also produces logic chips that are custom-designed by clients. According to Kiwoom Securities analyst Pak Yuak, the most recent agreement will assist in lowering losses at Samsung’s foundry division, which he calculated totalled more than ₩5 trillion ($3.63 billion) for the first half of the year.

    Geopolitical Stakes: Strengthening US–South Korea Tech Ties

    According to analysts, Samsung has had trouble keeping important customers from switching to TSMC for cutting-edge processors. Among TSMC’s clients are Apple, Nvidia, and Qualcomm. The Samsung-Tesla agreement is also important for South Korea, which is looking for U.S. shipbuilding and chip collaborations as it makes desperate attempts to negotiate a trade agreement that would remove or drastically cut possible 25% U.S. tariffs.

    Samsung’s Chip Struggles: Can This Deal Turn Things Around?

    According to BNK Investment & Securities analyst Lee Min-hee, Samsung is struggling to increase manufacturing yields of its most recent 2-nanometre technology; therefore, it is unlikely that the order will incorporate the state-of-the-art technology.

    In contract manufacturing, Samsung has been losing market share to TSMC, highlighting the technological obstacles the company must overcome to become proficient in advanced chip fabrication and draw in customers like Apple and Nvidia, analysts said.

    It’s unclear how the order will impact Samsung’s plans to begin production at its new Texas factory, which has been postponed due to the company’s inability to attract big clients.

  • Intel to Slash 4,000 Jobs by Mid-July in Major Restructuring Push

    As part of a company-wide restructuring spearheaded by new CEO Lip-Bu Tan, Intel Corporation has announced a new round of layoffs that will impact 2,400 more employees, bringing the total number of job cuts to almost 4,000 nationwide.

    Almost 2,400 jobs will be lost in Oregon alone, making this one of the biggest tech layoffs in Oregon’s history. The cuts will be implemented by mid-July and will affect several US states, including California, Arizona, and Texas.

    Intel, a major R&D centre with more than 20,000 employees in Oregon, will lay off more than 1,500 workers at its Ronler Acres complex in Hillsboro. The action highlights the company’s changing priorities and budgetary limitations in the face of the semiconductor industry’s rapid transformation.

    Intel-Oregon’s Tech Pillar

    Intel has long been a mainstay of Oregon’s tech economy and the state’s largest employer in the private sector. The average annual pay for semiconductor employment in the state is $180,000, which is far more than the state median.

    It is anticipated that the layoffs will have an effect on consumer spending and state tax receipts throughout the Oregon economy. CEO Lip-Bu stated that Intel was truly in the lead twenty or thirty years ago. According to reports, earlier this week, Tan informed staff, “Now… we are not in the top 10 semiconductor companies,” highlighting the need for a restructuring.

    It has taken years for Intel to start declining. It has lost its position as the undisputed leader in the global semiconductor business to Taiwan Semiconductor Manufacturing Co. (TSMC), which now provides cutting-edge processors to firms like Apple and Nvidia.

    Intel Failed to Capture AI Chip Market

    Additionally, Nvidia, which produces the GPUs that power the majority of massive AI models and data centres, has surpassed Intel in the market for AI chips. Tan acknowledged that Intel must now shift its focus to related AI and edge computing technologies since it is “too late” to lead in AI training chips.

    A significant restructuring of Intel’s core business is indicated by the company’s decision to leave the automotive chip business, outsource its marketing to Accenture, and reduce employment in the Foundry Division by 20%. Known for his experience in semiconductors and venture finance, including his work with Cadence Design Systems, Lip-Bu Tan assumed the role of CEO earlier this year.

    His strategy mainly focusses on optimising processes and bringing Intel back to profitability through technological alliances and cost reductions. Intel continues to collect about $260 million in tax benefits from Oregon each year while restructuring is going on; this could come under scrutiny if future expansion plans are postponed or abandoned completely.

  • Jensen Huang Dismisses Fears: US AI Chips Unlikely in China’s Military

    According to Jensen Huang, CEO of Nvidia Corp., the US government need not worry about the Chinese military enhancing its capabilities with the help of his company’s goods.

    Huang claimed that the Chinese military will refrain from utilising US technology due to the dangers involved, which is the main reason Washington has given for tightening limits on US technology exports to the Asian country.

    In an interview on July 13, Huang said that the US need not be concerned about it. He went on, “They just can’t rely on it.” “Of course, it could be limited at any moment.”

    US Government Imposed Restrictions on Nvidia

    Citing worries about possible military uses, the US government has prohibited the export of Nvidia’s most cutting-edge semiconductors to China since 2022. Earlier this year, Nvidia’s H20 artificial intelligence processors, which were the company’s most potent AI chip approved for sale in China, were likewise prohibited from entering the US.

    Under ever stricter regulations intended to prevent China from gaining access to the most advanced artificial intelligence capabilities, Huang and his colleagues have lost out on billions of dollars in revenue. Unrestricted employment of the most capable components would be a national security danger, according to successive Washington governments.

    Before travelling to Beijing, Nvidia’s CEO, who was in Washington last week, stated that the approach will fail because it will encourage the development of indigenous capabilities in China that will eventually compete with those developed by the US technology industry.

    Nvidia Calling US Restrictions Unfair

    In order to keep their products at the forefront of AI development, Nvidia and its peers argue that US businesses should be permitted to ship to the largest semiconductor market in the world.

    Huang has commended the administration’s efforts to boost local semiconductor production and met with President Donald Trump last week to reiterate his position.

    The majority of Taiwan Semiconductor Manufacturing Co.’s manufacturing facilities are situated on its native island, which is situated just off the Chinese mainland. Nvidia and other companies are reliant on these facilities.

    Trump bragged about Nvidia’s achievements and how it became the first American business to reach a $4 trillion market valuation.

    Although the specifics of a White House meeting between the two were not disclosed, politicians and the administration on both sides have so far maintained their stance against granting Chinese businesses additional access.

    However, Democratic Senator Elizabeth Warren and Republican Senator Jim Banks wrote a letter on 11 July urging Huang to avoid meeting with Chinese businesses that have connections to Beijing’s military and intelligence agencies or are suspected of undermining US semiconductor export rules. According to a news agency, they also particularly warned against doing business with organisations on the US prohibited export list.