NVIDIA CEO Huang Reveals How Long It Will Take For US Chip Independence

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Jensen Huang, NVIDIA Chief Executive Officer, remarked that it might take up to 20 years for the United States to be independent from having to obtain chips from overseas. He made the statement while speaking at the New York Times’s DealBook conference in New York.

“We are somewhere between a decade and two decades away from supply chain independence,” said Huang. “It’s not a really practical thing for a decade or two.” This timeline will most likely disappoint proponents of building up the infrastructure necessary to make these important components in the United States. Especially as tensions continue to rise between the United States and China.

Huang also did his best to reassure NVIDIA customers in China about its commitment to delivering products to the country after the U.S. government placed restrictions on some of NVIDIA’s offerings. “We have to come up with new chips that comply with the regulation, and once we comply with the regulation, we’ll go back to China,” Huang said. “We try to do business with everybody we can.”

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There have been several rules put in place by the Biden Administration to prevent some of NVIDIA’s stronger artificial intelligence chips from making it to China. This is because the U.S. government believes stopping these powerful AI chips from making their way to China is a matter of national security.

Huang also seemingly pushed back against the policy of withholding the chips, noting that there are now up to as many as 50 new companies that are operating in China looking to compete with NVIDIA. There are also attempts happening in Europe to try and build its own homegrown chip makers.

NVIDIA will have to navigate carefully as it tries to meet the demands of the U.S. government while trying to produce usable chips for one of the biggest markets.