A partner at a prominent Chinese semiconductor investment fund has expressed enthusiasm for the U.S. government’s recent ban on exporting certain advanced chip types to China. Chloe Wang, a partner and vice-president at the Yang Cheng Fund, headquartered in Guangzhou, welcomed the move, characterizing it as “great news” that could stimulate the growth of a domestic ecosystem.
Wang’s Perspective on the Ban
Wang made these remarks at CNBC’s East Tech West conference in Guangzhou’s Nansha district, where she shared her perspective on the ban, particularly focusing on the export restrictions of Nvidia’s A800 and H800 chips. The ban on Nvidia’s H100 chip had already been implemented in earlier U.S. government restrictions.
The Yang Cheng Fund specializes in investments in semiconductor companies, with a particular emphasis on those in the artificial intelligence (AI) training and autonomous vehicle sectors. Wang revealed that one of the AI chip companies in their portfolio is gearing up for an initial public offering later this year, while another Shanghai-based AI chip firm has already garnered a valuation exceeding $3 billion. She did not disclose the names of these firms.
Wang expressed her confidence in the capabilities of Chinese entrepreneurs and the strength of the consumer market in China. She anticipates that upstream chipmakers will play a pivotal role in China’s semiconductor industry, fostering the development of a self-sustaining ecosystem that reduces reliance on foreign technologies like Nvidia’s CUDA system.
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China’s Ambitions
China has set ambitious goals for its computing power, aiming to increase it by 50% by 2025. This strategy, led by various Chinese ministries, is essential for advancing artificial intelligence, which relies on advanced semiconductors to process vast amounts of data efficiently.
The U.S. government’s ban on exporting advanced semiconductors to China is primarily motivated by national security concerns, as these chips could be employed for military purposes and modernization. U.S. officials have clarified that this action is not intended to hinder Chinese economic growth. It underscores the delicate balance between technology security and international trade relations.
To Summarize
In a related context, recent attention has returned to Chinese tech giant Huawei, which managed to introduce its latest smartphone, the Mate 60 Pro, featuring a chip supporting 5G technology despite U.S. sanctions aimed at restricting Huawei’s access to advanced tech. The chip, manufactured by China’s SMIC, has raised questions about how this feat was achieved and whether the production process is scalable enough to sustain a Huawei resurgence in the global market.
