Nvidia is facing its first real competitor in China. US export controls, designed to cut off China’s access to advanced chips and chipmaking gear, were supposed to ensure that no domestic rival could emerge. But the very sanctions meant to shut down China’s chipmaking sector have instead fuelled it, accelerating the rise of an unexpected challenger: Huawei.
The paradox is clear — had the US never imposed chip export bans, the Chinese conglomerate would have continued to rely on Taiwan Semiconductor Manufacturing Company for its chips. Chinese chips would have pr