Nvidia’s top executive urges US policymakers to rethink chip restrictions

US chip export controls helped, instead of hindering, China’s growing chip dominance, says Nvidia CEO Jensen Huang. The head of one of the world’s most valuable companies doubled down on criticism of US chip export restrictions, calling the policy a “failure” that has cost American firms bns of USD and accelerated China’s domestic chipmaking efforts during a speech at Computex 2025 in Taipei (watch, runtime: 1:42:51). Huang argued that the curbs undermined US competitiveness, adding that if the US doesn’t sell, “the competition will come.”

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Nvidia itself has had the hard end of much of the restrictions, having taken a USD 5.5 bn hit after the Trump administration expanded controls to cover its H20 chip — a downgraded model initially designed to comply with earlier rules, according to the Financial Times.

“Fundamentally flawed” assumptions drove the policy, according to Huang, who said said the now-scrapped “AI diffusion rule” — which imposed a three-tier licensing system blocking China from accessing US-made chips — ultimately cost US companies bns of USD in lost sales, including for Nvidia and AMD, and turbocharged China’s domestic chipmaking push.

Chinese manufacturers filled the vacuum as Nvidia’s share of the Chinese AI chip market dropped from 95% to 50% since 2022, according to Huang. He pointed to Huawei as one of its several fast-moving rivals, adding, “local companies are very determined, and export controls gave them the spirit, and government support accelerated their development.”

So, what’s next? The Trump administration is reportedly working on a new global licensing system based on government-to-government agreements, replacing the Biden-era AI diffusion rule — a move that has drawn support from Huang.

MARKETS THIS MORNING-

Asian markets are in the red in early trading this morning. Japan’s Nikkei is down 0.8%, Korea’s Kospi is looking at losses of 1.3%, the Hang Seng is also in the red, down 0.5%, while the Shanghai Composite is flat.

THE CLOSING BELL: TADAWUL-

The TASI fell 1.2% yesterday on turnover of SAR 4.4 bn. The index is down 6.1% YTD.

In the green: Sarco (+4.4%), 2P (+3.4%) and SHL (+2.2%).

In the red: NGC (-4.8%), Acwa Power (-4.4%) and Alrajhi Takaful (-4.2%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.4% yesterday on turnover of SAR 25.1 mn. The index is down 12.9% YTD.

In the green: Ghida Alsultan (+8.2%), UFG (+7.3%) and Lime Industries (+7.0%).

In the red: Naas Petrol (-9.1%), Itmam (-8.9%) and SPC (-8.3%).

CORPORATE ACTIONS-

Qassim Cement’s BoD approved a SAR 87.8 mn dividend distribution for 1Q 2025 at SAR 0.80 per share, according to a disclosure to Tadawul. Distribution is scheduled to start on 16 June.

MBC Group’s top brass recommended not to distribute dividends for FY 2024, citing plans to preserve liquidity, expand operations, and bolster the group’s financial position, according to a disclosure to Tadawul.

Tihama Advertising submitted a request to the Capital Market Authority to reduce its capital from SAR 400 mn to about SAR 226 mn, according to a disclosure to Tadawul. The move involves canceling over 17.4 mn shares worth some SAR 173.9 mn to write off accumulated losses. The proposed reduction — first announced in March — is still pending regulatory and shareholders’ approval.