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China is furious and desires to ban NVIDIA because of Taiwan but can´t afford it!

At a night market gathering on May 29, Huang emphasized to reporters the significant role Taiwan plays in the global electronics industry, highlighting its pivotal position in shaping the computer industry.

During a speech at National Taiwan University on June 2, he showcased a map of Taiwan surrounded by the names of Taiwanese companies and institutions collaborating with Nvidia, expressing gratitude for their foundational role in the AI industrial revolution.

In a recent article published by Chinese online media firm Guancha on Thursday, concerns were raised about Huang’s perceived attitude towards Taiwan, suggesting his popularity might have led to overconfidence. Guancha criticized Huang for referring to Taiwan as a “country,” asserting that such support for “Taiwan independence” makes collaboration with Chinese companies impossible. They urged Huang to provide an explanation to Chinese compatriots and supply chain partners.

However, a National Taiwan University academic dismissed the possibility of Beijing turning hostile towards Huang, noting that while China relies on Nvidia, Nvidia does not necessarily depend on China. Lin Tsung-nan, a professor in the university’s Department of Electrical Engineering, highlighted Nvidia’s dominance in the AI chip market, suggesting that even though the Chinese government supports Huawei Technologies Co., its chips don’t match the performance of Nvidia’s products, even when downgraded.

“The Chinese government bullies the good and fears the strong, so it arbitrarily bans imports of Taiwan’s agricultural products, but does it dare ban Taiwan Semiconductor Manufacturing Co’s [TSMC]?” Lin asked.

China’s reliance on Nvidia’s high-end chips is significant, according to statements made by experts. They emphasized that as long as China requires Huang’s expertise, Beijing is unlikely to undermine its own interests, even in the face of conflicting remarks.

Tu Tzu-chen, an adjunct professor at Chung Hua University, highlighted the Chinese government’s understanding of the principle of “the lesser of two evils,” suggesting that criticism of Huang would yield no benefits.

However, there may still be lingering resentment from Beijing, contingent upon Nvidia’s resilience, Tu added.

Nvidia’s advancements in chip technology, such as the development of 3-nanometer and 5-nanometer chips, surpass China’s current capabilities, which are limited to 7-nanometer chips. Consequently, China remains dependent on Nvidia for high-end AI chips, crucial for applications like PCs and autonomous vehicles.

Liu Pei-chen, a research director at the Taiwan Institute of Economic Research, underscored China’s recognition of Nvidia’s pivotal role in the global AI industry, spanning hardware, software, server platforms, edge computing, smart factories, and robotics. China is unlikely to antagonize Huang, as it aims to preserve opportunities for collaboration.

Furthermore, given China’s challenges in achieving breakthroughs in high-end AI chip manufacturing and advanced packaging solutions, coupled with disparities in algorithm technology, Nvidia remains a strategic partner upon which China must rely.

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