NVIDIA CEO Maps Out Two-Decade Path For US Chip Self-Reliance, Emphasizes 'National Competitiveness' Amid China Dependence: Report

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NVIDIA Corporation's (NASDAQ:NVDA) CEO, Jensen Huang, reportedly stated that it could take the U.S. up to 20 years to become independent from foreign chip manufacturing.

At the New York Times's DealBook conference, Huang discussed how NVIDIA's products depend on various components sourced globally, not just from Taiwan, where essential parts are produced, according to a news report by Bloomberg.

"We are somewhere between a decade and two decades away from supply chain independence," Huang said, as noted by Bloomberg. "It's not a really practical thing for a decade or two."

This perspective indicates a challenging journey for a major goal of the Biden administration, which is to shift more chipmaking to the U.S., the report read. 

President Biden has advocated bipartisan legislation to encourage the construction of manufacturing facilities domestically. 

Numerous leading firms, including Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) (Nvidia's primary manufacturing partner), Samsung Electronics Co Ltd (SSNGY), and Intel Corporation (NASDAQ:INTC), are planning to enhance their operations in the U.S, the report added.

Huang also reiterated NVIDIA's dedication to China, which remains the largest market for chips, despite losing the capacity to sell its top-tier artificial intelligence processors there due to recent U.S. government export restrictions aimed at protecting national security, according to the Bloomberg note.

Following the announcement of the latest regulations, NVDA is working on products for China that will not activate limitations, the report read.

"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, as noted by Bloomberg. 

"We try to do business with everybody we can. On the other hand, our national security matters. Our national competitiveness matters," Huang added.

Read Next: Amazon's Cloud and AI Innovations Bolstered by Nvidia Partnership, Analyst Predicts Growth

Price Action: NVDA shares are trading higher by 0.74% to $481.75 on the last check Wednesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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