Jensen Huang said the US move has backfired by accelerating China’s self-sufficiency in semiconductors and diminishing American dominance in the global chip market…reports Asian Lite News
Nvidia CEO Jensen Huang has sharply criticised US export controls on artificial intelligence (AI) chips to China, describing them as a “failure” that has backfired by accelerating China’s self-sufficiency in semiconductors and diminishing American dominance in the global chip market.
Speaking at the Computex technology expo in Taipei, Huang said the US government’s foundational assumptions behind the export controls were “fundamentally flawed.” His comments come amid escalating tensions between Washington and Beijing over technological competition and national security.
“All in all, the export control was a failure,” Huang told reporters. “The fundamental assumptions that led to the AI diffusion rule in the beginning have been proven to be flawed.” He argued that rather than curtailing China’s AI development, the measures had pushed Chinese firms to seek domestic alternatives, including Huawei, and spurred a national drive to build an independent semiconductor ecosystem.
Huang pointed out that Nvidia’s share of China’s AI chip market has plummeted—from commanding 95% to just 50%—since the Biden administration began imposing tighter curbs on exports of high-performance chips to China. These controls, implemented through the Commerce Department, were intended to limit China’s access to cutting-edge AI capabilities seen as crucial for military and surveillance applications.
“All in all, the export control was a failure. The fundamental assumptions that led to the AI diffusion rule in the beginning have been proven to be flawed.”
- Jensen Huang, CEO, Nvidia
The reaction from China has been swift and severe. On Monday, Beijing condemned fresh US guidance warning companies not to use Chinese AI chips—particularly Huawei’s Ascend processors—as “discriminatory” and urged Washington to “immediately correct its wrongdoings.” China’s Ministry of Commerce warned that such actions could disrupt ongoing trade talks and vowed “resolute countermeasures.”
Nvidia, a leading American chipmaker and global pioneer in AI hardware, has been caught in the middle of the geopolitical storm. While the company has had to comply with the US rules, it has simultaneously sought to maintain its foothold in the vast and strategically important Chinese market.
In a strategic pivot, Nvidia recently partnered with Taiwan’s Foxconn (Hon Hai Technology Group) and the Taiwanese government to establish an AI factory supercomputer. The collaboration, announced at Computex, will use the latest NVIDIA Blackwell infrastructure to support researchers, startups, and industries in Taiwan. The facility, built by Foxconn subsidiary Big Innovation Company as an NVIDIA Cloud Partner, will feature 10,000 Nvidia Blackwell GPUs—making it one of the most powerful AI systems in Asia.
According to Nvidia’s press release, this infrastructure will significantly expand AI computing availability and foster innovation across sectors. The move signals Nvidia’s intention to deepen ties with partners in Taiwan and elsewhere in the Indo-Pacific as an alternative to direct engagement with China.
Meanwhile, the US is doubling down on efforts to tighten the noose on AI chip flows to adversarial states. Senator Tom Cotton, a Republican from Arkansas, has introduced the Chip Security Act, a legislative proposal that would mandate location verification systems and tighter reporting requirements for exporters of advanced semiconductors.
“We must do better at maintaining and expanding our position in the global market while safeguarding America’s technological edge,” Cotton said in a statement. “With these enhanced security measures, we can continue to expand access to US technology without compromising our national security.”
The bill directs the US Commerce Secretary to require a chip location-tracking mechanism within six months of the law’s enactment and obliges exporters to report any diversions or tampering attempts to the Bureau of Industry and Security (BIS). It also calls for a multi-year review—coordinated with the Department of Defence—of the latest security innovations and mechanisms suitable for safeguarding high-end chips.
If passed, the Chip Security Act would mark a significant expansion of US export control architecture, extending beyond licensing and into the technical integrity of chip usage and destination tracking. The proposal also calls for regular updates and flexible control recommendations over three years, to ensure the legislation adapts to evolving technology and threat landscapes.
However, critics argue that while security concerns are legitimate, such laws risk triggering retaliation from China, fragmenting global supply chains, and accelerating the technological decoupling of the world’s two largest economies.
Jensen Huang’s comments underscore the high stakes and complex trade-offs involved. While the US aims to protect its innovation edge, the current trajectory, according to the Nvidia chief, may instead be fuelling the rise of domestic competitors in China and undermining America’s share of one of the fastest-growing technology sectors.
As geopolitical tensions deepen, the tech world faces a stark reality: the AI arms race is no longer just about speed or scale—it’s also about sovereignty, security, and survival in an increasingly fragmented global order.
