![](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/12\/P09-251215-308.jpg\")
<\/p>\n CHIP RACE:
\n Three years of overbroad export controls drove foreign competitors to pursue their own AI chips, and \u2018cost US taxpayers billions of dollars,\u2019 Nvidia said <\/p>\n
China has figured out the US strategy for allowing it to buy Nvidia Corp\u2019s H200s and is rejecting the artificial intelligence (AI) chip in favor of domestically developed semiconductors, White House AI adviser David Sacks said, citing news reports.<\/p>\n
US President Donald Trump on Monday said that he would allow shipments of Nvidia\u2019s H200 chips to China, part of an administration effort backed by Sacks to challenge Chinese tech champions such as Huawei Technologies Co (\u83ef\u70ba) by bringing US competition to their home market.<\/p>\n
On Friday, Sacks signaled that he was uncertain about whether that approach would work.<\/p>\n
<\/p>\n
Photo: EPA<\/p>\n
\u201cThey\u2019re rejecting our chips,\u201d Sacks said in an interview on Bloomberg Tech, citing an unspecified news article he had seen that day. \u201cApparently they don\u2019t want them, and I think the reason for that is they want semiconductor independence.\u201d<\/p>\n
Sacks on Saturday wrote on social media that he was referring to a Financial Times report that China was poised to limit access to the chips through a local approval process in which Chinese buyers would need to justify their purchases.<\/p>\n
Sacks\u2019 comments raise questions about whether Nvidia would be able to recover revenue from China. Bloomberg Intelligence analysts estimate annual H200 revenue in China to be a US$10 billion opportunity \u2014 but only if the nation accepts the US firm\u2019s chips.<\/p>\n
Nvidia would continue to work with the administration on H200 licenses for vetted customers, a company spokesperson said in a statement.<\/p>\n
\u201cWhile we do not yet have results to report, it\u2019s clear that three years of overbroad export controls fueled America\u2019s foreign competitors and cost US taxpayers billions of dollars,\u201d the company said.<\/p>\n
China is weighing a package of incentives worth as much as US$70 billion to support its local chipmaking industry, Bloomberg reported on Friday, underscoring Beijing\u2019s resolve to reduce its reliance on foreign chipmakers such as Nvidia.<\/p>\n
It suggests that the government would continue to support companies such as Huawei and Cambricon Technologies Corp (\u5bd2\u6b66\u7d00) even with the H200 cleared by the US for export to China.<\/p>\n
The H200, which was introduced in 2023 and began shipping to customers last year, is part of the Hopper generation of Nvidia\u2019s graphics processing units, second-best to the Blackwell line and two generations behind the upcoming Rubin series. An 18-month lag behind the latest Nvidia chips was part of the Trump administration\u2019s justification for the decision.<\/p>\n
Sacks, a venture capitalist who joined the administration in January, identified China\u2019s desire to prop up and subsidize Huawei as a key reason for its H200 reluctance. <\/p>\n
\u201cWhat you see is China\u2019s not taking them because they want to prop up and subsidize Huawei,\u201d Sacks said. \u201cThat was part of our calculation, of selling not the best, but lagging chips to China, is that you can take market share away from Huawei, but I think the Chinese government has figured that out, and that\u2019s why they\u2019re not allowing them.\u201d<\/p>\n
Beijing has yet to publicly agree to allow imports of Nvidia\u2019s H200 products. It also has yet to publicly reject them, despite the recent US policy change. Earlier this year, China shunned the H20, a significantly less capable chip Trump allowed this summer.<\/p>\n","protected":false},"excerpt":{"rendered":"CHIP RACE: Three years of overbroad export controls drove foreign competitors to pursue their own AI chips, and…\n","protected":false},"author":2,"featured_media":185400,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125,5701,5700],"class_list":["post-185399","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology","tag-the-taipei-times","tag-5700"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/185399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=185399"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/185399\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/185400"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=185399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=185399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=185399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}