US Tech Companies Warned of Enormous Damage in Semiconductor Trade War with China

THE american companies could suffer enormous damage if tensions in the semiconductor trade war between UNITED STATES and the Chine were intensifying, said Jensen HuangCEO of the Taiwanese company Nvidia. In a recent interview with the Financial Times, Huang highlighted the vital importance of the Chinese market to US tech companies and the potentially devastating impact of their exclusion. “If we are deprived of the Chinese market, we have no possibility for that. There is no other China, there is only one China“, he warned. This remark refers to the growing importance of China as a consumer of technology products and semiconductors.

Deprivation of access to this market could mean a significant loss of revenue for American companies that depend on these sales. Jensen Huang also noted that the United States would be “swimming in fabs”, the factories where chips are made, if the company lost the Chinese market, causing its capacity needs to fall by a third. This vision suggests a surplus of production and unused investments, potentially harmful to the economy of the United States.

The Nvidia CEO has warned that if US regulators don’t think carefully about their decisions, they could harm the tech industry. In addition, Huang pointed out the threat of China deciding to build more chips itself if it can’t buy from American companies. This move could not only reduce demand for US chips, but also lead to increased competition in the global semiconductor industry.

Huang’s interview took place just before Chinese regulators announced a ban on US micron chips in certain structures, clearly putting the company in trouble. The current situation is therefore complex and the stakes are high for American companies.