NVIDIA, a leading semiconductor company, has voiced strong opposition to the new US restrictions on exporting advanced chips to China, calling them “rash measures” that will not enhance national security but will instead drive the market toward alternative technologies, according to Bloomberg.
Ned Finkle, NVIDIA’s Vice President of Government Affairs, argued that the White House appears to be intensifying its chip trade policies, continuing the trajectory set by the Trump administration.
Finkle emphasized that the new regulations will not bolster national security but will create a technological void, encouraging other markets to develop alternatives. He warned that limiting the export of US-made AI chips could negatively impact both NVIDIA and the broader American economy.
The restrictions aim to block advanced technology from reaching Chinese firms such as Huawei. This move follows Huawei’s release of its Kirin chips, sparking US concerns about China’s progress in the semiconductor industry. However, Finkle cautioned that these measures might have unintended consequences.
“The strict export policies will disrupt global access to computing technologies and fail to achieve any meaningful national security benefits,” Finkle said. “Instead, these restrictions will push the world toward alternative technologies. It makes no sense for the Biden administration to regulate everyday computing technologies and servers already used globally under the pretense of countering China.”
The new rules limit the export of NVIDIA’s AI chips, reducing their availability across global markets and restricting their use to a few nations, potentially causing significant disruptions.
The policy is expected to take effect just days before President Biden’s term ends. Finkle urged the administration to reconsider decisions that could harm the US economy and give competitors an advantage.
“We encourage President Biden not to preemptively impose policies that will harm the American economy and weaken the US, all while benefiting its rivals,” Finkle added.
NVIDIA sees the potential return of a Trump-led administration as a possible shift toward less restrictive policies, which could help the company expand without excessive limitations.
