Description: Chinese Huawei Technologies reportedly plans on launching massive shipments of the 910C advanced artificial intelligence microchips as Nvidia’s market dominance fell as the latest victim of the US – China trade war. The decision was apparently prompted by Trump’s prohibition imposed on Nvidia to sale their H20 chips on the Chinese marker without an export license. The announcement has been positively received by Chinese tech companies and start ups which have been in search for adequate alternatives for Nvidia chips. Taiwanese chip giant TSMC has been initially floated as the main manufacturer of Huawei’s 910C, as previous cooperation between the companies was speculated to have been for the Chinese company called Sophgo.
Impact: China further persists Trump’s foreign tariffs by firing on all diplomatic cylinders while incentivizing domestic companies to ramp up production. Nvidia’s dominance on the Chinese market was crippled by Trump’s decision to force the company to acquire export licenses for their products on the Chinese market which enabled Huawei to assume their position and potentially rival Nvidia’s manufacturing output in the long – term. China could further benefit and strengthen its potential negotiating position with the US by implementing existing economic strategies while the US would have to reassess their entire foreign policy agenda regarding the imposition of tariffs in order not to crush domestic companies such as Nvidia which have held dominant positions in their respective industries for decades. After China’s radical steps to enhance diplomatic efforts and ramp up domestic production, the trade war is expected to gradually douse down which currently leaves China in an advantageous position over the US.