Nvidia CEO Jensen Huang recently made a surprise visit to China amid growing demand for Huawei products. Some experts said that Lao Huang's sudden arrival this time may be to appease customers, and behind this is Huawei's fierce rise. Notably, this is the first time in four years that the Nvidia executive has traveled to Asia to seek new customers.
According to the details, Huang initially visited Nvidia's headquarters in Shenzhen, Shanghai and Beijing and attended the annual meeting. He wore traditional Chinese clothes, wore a big flower vest and twisted Yangge, and celebrated the New Year's party. There was also a small episode at the scene of the lucky draw, and the name of one of the lucky winners was "Huawei".
In addition to Huawei's impact, another reason may be that U.S. regulations continue to hit Nvidia's AI chip sales in the domestic market. In the past few years, U.S. authorities have banned some of Nvidia's high-end AI chips from trading in China. While Nvidia launched a modified version for Chinese customers, it didn't attract many users because the overall computing power dropped by 80% from the original version.
At the same time, China is turning to Huawei and other homegrown companies because we believe they can produce more powerful chips without violating U.S. export rules. These factors have had a significant impact on the respective chipmakers. There is also news that the country is no longer interested in dealing with high-cost Nvidia chipsets and will reduce orders in 2024. As a result, Nvidia is trying to win back customers in one major market.
Let's take a look at NVIDIA's growth in China:
China is one of NVIDIA's main markets. The chipmaker has more than 90 percent of China's $7 billion worth of AI chip products. Still, U.S. bans and excessive control of China's trading operations have put the company in trouble.
However, some analysts say the U.S. ban is more likely to be a good thing for Chinese companies like Huawei because they have gained new opportunities in the field of artificial intelligence chips.
Huawei's chip growth:
Huawei is focusing on increasing the production of Kirin chips this year. Ultimately, this important move will open the door to new achievements for Huawei's excellent share of the smartphone market. So far, some new Kirin processors are rumored to be in the works that will bring higher performance and great features.
Another reason why Huang came to China may be that Nvidia supplies about 80 percent of its self-driving chips in China. And this field is also where Huawei is making efforts. As a result, the U.S. chipmaker may be looking for new markets while consolidating existing ones.
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