Skip to main content

US Chipmakers Fear Ceding China's AI Market to Huawei After New Trump Restrictions

2 months 1 week ago
The Trump administration is "taking measures to restrict the sale of AI chips by Nvidia, Advanced Micro Devices and Intel," especially in China, reports the New York Times. But that's triggered a series of dominoes. "In the two days after the limits became public, shares of Nvidia, the world's leading AI chipmaker, fell 8.4%. AMD's shares dropped 7.4%, and Intel's were down 6.8%." (AMD expects up to $800 million in charges after the move, according to CNBC, while NVIDIA said it would take a quarterly charge of about $5.5 billion.) The Times notes hopeful remarks Thursday from Jensen Huang, CEO of Nvidia, during a meeting with the China Council for the Promotion of International Trade. "We're going to continue to make significant effort to optimize our products that are compliant within the regulations and continue to serve China's market." But America's chipmakers also have a greater fear, according to the article: "that their retreat could turn the Chinese tech giant Huawei into a global chip-making powerhouse." "For the U.S. semiconductor industry, China is gone," said Handel Jones, a semiconductor consultant at International Business Strategies, which advises electronics companies. He projects that Chinese companies will have a majority share of chips in every major category in China by 2030... Huang's message spoke to one of his biggest fears. For years, he has worried that Huawei, China's telecommunications giant, will become a major competitor in AI. He has warned U.S. officials that blocking U.S. companies from competing in China would accelerate Huawei's rise, said three people familiar with those meetings who spoke on the condition of anonymity. If Huawei gains ground, Huang and others at Nvidia have painted a dark picture of a future in which China will use the company's chips to build AI data centers across the world for the Belt and Road Initiative, a strategic effort to increase Beijing's influence by paying for infrastructure projects around the world, a person familiar with the company's thinking said... Nvidia's previous generation of chips perform about 40% better than Huawei's best product, said Gregory C. Allen, who has written about Huawei in his role as director of the Wadhwani AI Center at the Center for Strategic and International Studies. But that gap could dwindle if Huawei scoops up the business of its American rivals, Allen said. Nvidia was expected to make more than $16 billion in sales this year from the H20 in China before the restriction. Huawei could use that money to hire more experienced engineers and make higher-quality chips. Allen said the U.S. government's restrictions also could help Huawei bring on customers like DeepSeek, a leading Chinese AI startup. Working with those companies could help Huawei improve the software it develops to control its chips. Those kinds of tools have been one of Nvidia's strengths over the years. TechRepublic identifies this key quote from an earlier article: "This kills NVIDIA's access to a key market, and they will lose traction in the country," Patrick Moorhead, a tech analyst with Moor Insights & Strategy, told The New York Times. He added that Chinese companies will buy from local rival Huawei instead.

Read more of this story at Slashdot.

EditorDavid

Scientists Find Rare Evidence Earth is 'Peeling' Under the Sierra Nevada Mountains

2 months 1 week ago
"Seismologist Deborah Kilb was wading through California earthquake records from the past four decades when she noticed something odd," reports CNN, "a series of deep earthquakes that had occurred under the Sierra Nevada at a depth where Earth's crust would typically be too hot and high pressure for seismic activity..." Kilb flagged the data to Vera Schulte-Pelkum, a research scientist at the Cooperative Institute for Research in Environmental Sciences and an associate research professor of geological sciences at the University of Colorado Boulder... Using the newfound data, the researchers imaged the Sierra Nevada through a technique known as receiver function analysis, which uses seismic waves to map Earth's internal structure. The scientists found that in the central region of the mountain range, Earth's crust is currently peeling away, a process scientifically known as lithospheric foundering. Kilb and Schulte-Pelkum reported the findings in December in the journal Geophysical Research Letters. The hypothesis lined up with previous speculation that the area had undergone lithospheric foundering, which happens when Earth's outermost layer sinks into the lower layer of the mantle. Now, the study authors believe that the process is ongoing and is currently progressing to the north of the mountain range, according to the study... What's happening under the Sierra Nevada could offer rare insight into how the continents formed, Schulte-Pelkum said. The finding could also help scientists identify more areas where this process is happening as well as provide a better understanding of earthquakes and how our planet operates, she added... Evidence for this process has been hard to come by. It is not visible from above ground, and it's an extremely slow process. Scientists theorize that the south Sierra finished the process of lithospheric foundering about 4 million to 3 million years ago, according to the study. It appears that these natural events happen occasionally around the world, Schulte-Pelkum said. "Geologically speaking, this is a pretty quick process with long periods of stability in between. ... This (lithosphere foundering) probably started happening a long time ago when we started building continents, and (the continents) have gotten bigger over time. So it's just sort of this punctuated, localized thing," she added... Further study within this area could also help scientists better understand how the Earth evolves on long timescales. If the lithospheric foundering continues underneath the mountain range, one can speculate that the land will continue to stretch vertically, changing the way the landscape looks now [said Mitchell McMillan, a research geologist and postdoctoral fellow at Georgia Tech, who was not involved with the study]. But that could take anywhere from several hundred thousand to a few million years, he added.

Read more of this story at Slashdot.

EditorDavid