China Launches Customs Crackdown on Nvidia AI Chips
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China has launched a customs crackdown on Nvidia AI chips, potentially due to US export controls, and the move's implications on the tech industry are being considered.
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Apparently the Chinese are nowhere near max capacity of modern chips, and, even more critically, lack access to high end lithography machines.
So they're stuck with comparatively inefficient designs but can play on volume.
They have enough rare earth metals themselves and are constricting exports, and they have the industrial manufacturing base.
As such, on the networking layer, their engineers are gonna be focused on trying to achieve performance via distribution which, if they succeed, would be a serious undercut to the price and power premium of US chip designs I guess.