Olicwe Blume, CEO of the Volkswagen Group
By Bolaji Ojo
What’s at stake:
Tech enterprises are chafing under severe export and manufacturing restriction terms set by Western and Chinese political leaders. In the semiconductor sector, regular operational functions involving capex, IP, R&D, and other activities are being dictated or influenced by state actors. The relentless use of technology restrictions to achieve political goals now threaten large swaths of the market although the totality of the impact remains hidden.
The barriers to Nvidia Corp. selling its most advanced AI chips and systems in China are artificially created. But they are no less formidable.
Soon, too, under rules that are under consideration, electric vehicles (EVs) made in China or with Chinese components will be banned, severely restricted or attract heavy tariffs in the United States and EU.
The actions of these governments are being executed sometimes with but often without the total consent of Western semiconductor suppliers, electronicsOEMs, systems builders, automotive makers, and tier-one suppliers.
So far, the response of the industry has been muted, even from companies like Nvidia, AMD and Intel that are experiencing downward sales pressures in China. Determining winners and losers in this environment will be difficult, at least until the dust settles, which may take several years.