Preface
On October 17, 2023, the United States suddenly announced that it would ban the sale and export of any AI-related chips to China, further strengthening the content of the previous ban on chips in China.
Jensen Huang, CEO of Nvidia, the top chip company in the United States, can't help but complain about this ban, and Nvidia's products will be seriously unsalable!
As a local company in the United States, why does Nvidia also complain about the decree issued by its own country?
U.S. chip products are seriously unsalable
To understand the story behind this, we have to start with Nvidia's announcement that it is not selling.
In the past few years, the convenience and intelligent advantages of artificial intelligence have been popularized around the world, and the chip industry once planned AI chips to the scope of key "care".
As a leader in the field of AI chips, NVIDIA has made cross-era achievements under the latest technology, and the world's chip market has been fully captured by NVIDIA.
However, the bullying behavior of the United States in China's chip field has firmly trapped Nvidia, which is in the midst of rapid progress.
Even though Nvidia paid one-fifth of its marketing revenue for this, in order to continue to occupy the Chinese market, Nvidia reluctantly reduced the chip allocation and continued to sell and export as a "special version".
Nvidia's madness towards the United States is also incomprehensible, even in the face of the "special version" of chips, the United States still cites and continues to restrict its exports.
However, the huge "deliciousness" of the Chinese market has deeply attracted Nvidia, so after many "reforms" and deployments, the new reduced chips continue to enter the Chinese market.
Chinese consumers, who were regarded as "fools" by Nvidia, faced with chips with only 15% of the original performance, Chinese consumers publicly expressed strong dissatisfaction with Nvidia's behavior of "thinking crazy about money", and the practice of ignoring it also hit Nvidia seriously.
The market's unacceptance and the government's pressure made Nvidia's products quickly unsalable, which led to the crazy complaining behavior of the Nvidia CEO at the beginning.
However, Nvidia is not the only company affected by the US decree, Intel is also within the scope of this "shot".
At the beginning of 2022, Intel publicly stated that it would build two large-scale chip factories in Ohio, which would mass-produce the latest Intel technology at that time, and would invest 20 billion to build factories.
When completed, the plant will provide nearly 10,000 jobs in Ohio, and the announcement has received strong support from the state of Ohio.
Looking at its perfect plan and the strong support of the local government, Intel confidently said that it will invest 100 billion yuan after the construction of the factory is completed to promote the research and development of technology and maintain the operation of the factory.
Just when Intel was dreaming of its 10 billion factory, the US government decree directly woke up Intel.
The 10 billion factory plan was postponed indefinitely, and the expectations of Intel, the local government and the people came to naught.
So, what is the reason why the two leading companies in the chip field have suffered such a strong blow?
The reason behind the slow-selling
Since 2018, in order to stop the rapid growth of the mainland's science and technology field, the United States has successively issued various restrictions on the export of chips to China, in order to stop the development of China's chip field.
This bullying carried out by the United States implicated many of the world's leading technology companies, and finally pushed this "farce" to a climax with a ban on the sale of AI chips to China in 2023.
As we all know, China has the largest audience in the field of chips in the world, and the annual demand for chips is second to none in the world.
However, the promulgation of the U.S. ban has forced many companies to abandon the Chinese market, and the scene of complaining for a while abounds in the world's chip companies.
This is like, the business of your starch sausage stall has always been good, and your opponent maliciously reported to the chengguan because of his red eyes, and the chengguan also came to collect your stall indiscriminately, so everyone should be able to understand the pain of these enterprises at that time.
A large part of the reason why the company's products are unsalable is because of the maturity of China's technology, and there is no need for the products of these foreign companies to be consumed by the market.
In the face of the chip restrictions in the United States, domestic chip companies have been holding their breath as if they had been beaten with chicken blood, gearing up in technology research and development, and vowing to make some achievements in the field of technology.
After a long period of unremitting efforts, Continental has also successfully developed a series of chips with mainland characteristics, such as Loongson chips and Taiji chips, and has won great praise in the market.
With its excellent performance and ultra-high technology, domestic chips have gradually brought China's vast market into the hands of the Chinese, and those unsatisfactory products of foreign companies have naturally become the outcasts of the Chinese market.
Even the CEO of Nvidia is crazy about saying that there is only one China, and there is only one Chinese market. Such almost crazy words also make it easy for us to see the importance of the Chinese market.
So, is that all there is to it about the impact of the chip ban?
The price to pay for the chip ban
In the early days of the U.S. decree, the U.S. hoped to form a so-called chip alliance to try to completely cut off the back road of Chinese chips by controlling chip giants around the world, so it began to look for new allies.
This time, it is eyeing South Korea, a country with Samsung, the world's leading chip company.
And South Korea saw that the big brother of the United States beckoned him to enter the game, whether he was willing or not, he could only be forced to enter in the end.
At this time, Samsung still doesn't know what kind of road of no return it is on.
Before the U.S. restriction decree was issued in 2022, the scale of China's chip imports was quite staggering, once reaching $101 billion, and Samsung alone accounted for more than half of this data.
But the good times did not last long, since Samsung entered the game in a daze under the coercion and lure of the United States, the rapid decline in profits almost scared the chairman of Samsung to sudden death.
In the first half of 2023 alone, Samsung Group has suffered an unprecedented blow, with profits falling sharply by 95% compared with before, which is equivalent to directly knocking Samsung back to the initial period.
Not only Samsung has been hit so badly, but other countries that are allies of the United States, like South Korea, have also experienced hellish darkness.
The ban on China has severely affected many companies and countries that have contracts with the United States, and companies that previously relied on importing Chinese products and raw materials have been hit head-on.
It is said that before the promulgation of the U.S. decree, Japan had signed contracts with Chinese companies such as Huawei and ZTE for 4G networks, but with the promulgation of the decree, Japan was forced to suspend the contract and look for new partners.
In the face of the US decree, the whole world has been so seriously affected, but the pace of development of the mainland today is still unstoppable, so what unknown efforts have the mainland made behind this?
China's response to the ban
As the dust settles on AI technology and artificial intelligence, the new direction of scientific and technological development has been established, and the mainland can only work the runway of AI.
In addition, as the most mature country in the world with 5G technology, the mainland has established a nationwide 5G technology base station.
Through 5G technology, Continental has also made achievements in the field of chips, solved a number of problems that plagued the industry, and made the 5G label firmly fixed on our business card.
In the long-lasting development process, the mainland has also gradually explored and developed a complete chip manufacturing industry chain from the chip manufacturing industry, whether it is the upstream raw materials of chips or the downstream manufacturing and production, the mainland has firmly grasped the core technology, and the situation of self-production and self-sale has begun.
Computing power is the most important aspect of chips, and traditional electrical computing can no longer meet the growing demand for chip computing.
In the manufacturing process of Taiji chips, the Tsinghua team of mainland China has developed optical computing that is sufficient to support the high level of technology, and with its own unique technical advantages, it has successfully made mainland stand at the forefront of world development.
Finally, in the stage of the mainland's technological self-development, the most important factor for the mainland to make achievements is to always maintain a high degree of self-confidence and the same firm ideals in the heart, and to move towards a new direction step by step in key areas.
epilogue
Nvidia complained about the unsalable chips and the announcement of the postponement of the construction of the 10 billion factory, all of which are caused by the unilateral technological bullying of the United States, and the backlash of this unilateral technological bullying has gradually been reflected in recent years, and the interests of the whole world will be infringed upon.
Although, the chip restrictions in the United States will make the mainland chip industry currently receive a certain impact, when we take a long-term view, these containments are not a strong push to inspire the mainland to continue to forge ahead, the "guardrails" of American chips will not hinder the pace of the mainland's development, and any unjust bullying will eventually fail to succeed.
Primary sources
China Youth Network, "The U.S. chip blockade against China is a "dead end" of vain unilateralism", 2023.9.26
Global Times, "Additional Restrictions on Chinese Chips, US Pressure on Allies Frustrated" 2024.4.15
Observer.com, "The United States was exposed to pressure the Netherlands, Japan, Germany, and South Korea to expand export controls on new products to China, but some countries resisted" 2024.3.7
The website of the China Commission for Discipline Inspection and the State Supervision Commission, "The United States Continues to Expand the Concept of National Security and Abuse Export Control Measures and "Technology Bullying" is Doomed to Failure", 2023.10.31