US Chip Export Ban 'Great News,' Says Partner At Chinese Tech Investment Fund Who Foresees Boost For Domestic Ecosystem

A partner at a Chinese tech investment fund has lauded the U.S. government’s ban on certain advanced chip exports to China, suggesting it’s “great news” that will spur a domestic ecosystem.

According to a report from CNBC, Chloe Wang, partner and vice-president at the Guangzhou-based Yang Cheng Fund, announced her support for the ban on the H100 and 800 chip exports to China during CNBC’s East Tech West conference in Guangzhou. The restriction prevents the sale of some advanced artificial intelligence (AI) chips, including chipmaker Nvidia’s NVDA A800 and H800 chips.

The U.S. Department of Commerce imposed the ban due to worries the chips could be used for military development purposes. Previously, Nvidia’s H100 chip, utilized by AI firms in the U.S., was banned under earlier U.S. government restrictions.

Wang’s fund invests in semiconductor companies, including those in the AI training and autonomous vehicle sectors. She highlighted a forthcoming IPO from one AI chip company they’ve invested in and a Shanghai-based AI chip firm valued at over $3 billion.

See Also: Nancy Pelosi’s Advice To Republicans: Empower Patrick McHenry By Giving Him ‘Awesome Power Of Speakership

Wang emphasized that these “upstream chipmakers” will play a pivotal role in China and develop their own ecosystem, potentially reducing the reliance on Nvidia’s AI software. She also expressed confidence in Chinese entrepreneurs and the consumer base market.

In China, there are around 1,500 companies involved in integrated circuit (IC) design and a “shortage” of companies in the AI chip training sector. China aims to boost its computing power by 50% by 2025, a crucial step for AI development, which requires advanced semiconductors.

The U.S. Commerce Secretary, Gina Raimondo, stated that the ban aims to prevent China’s access to advanced semiconductors for potential military use, not to impair Chinese economic growth.

There has been renewed focus on Chinese tech giant Huawei in recent months. Despite U.S. sanctions, its latest smartphone, the Mate 60 Pro, features a 5G-supporting chip made by China’s SMIC, raising concerns in Washington.

Read Next: Joe Biden Mocks Jim Jordan’s Failed Bid For House Speakership: ‘He Just Got His Rear End Kicked’

Picture by blickpixel on Pixabay