Nvidia CEO Warns: China Lagging in Chip Tech, US Holds Nanosecond Lead

Nvidia CEO Jensen Huang has said that China is only “nanoseconds behind” the United States in chip technology. His comments highlight the ongoing US China semiconductor gap and the race for global chip technology leadership.

China’s chip startups are growing fast. Companies like Cambricon, Moore Threads, Enflame, and MetaX are attracting billions of dollars, often supported by tech giants such as Alibaba, Tencent, and Baidu. Despite this growth, Beijing’s push for self-sufficiency has reduced Nvidia’s China sales by 20–30% since 2023. While Huang is welcomed during visits, Chinese authorities still encourage local alternatives, limiting foreign sales.

US restrictions, especially those introduced under former President Trump—including high tariffs on imports—aim to prevent military use of advanced chips. Huang warns, however, that these measures may risk ceding technological ground: “We’ve got to go compete.” Nvidia has adapted with its H20 chip workaround, which delivers about 80% of Blackwell’s performance, showing that innovation can continue even under restrictions.

The situation has broader economic and geopolitical effects. Relaxing restrictions could boost Nvidia’s potential $100 billion revenue in China and create US jobs through exports, while helping China continue AI growth under its self-reliance policies. Investors reacted cautiously, with Nvidia shares dropping 1% after Huang’s comments, but optimism remains if trade deals improve.

Huang also notes that global supply chains and tech rivalry are affected. A more open China could speed innovation but raises concerns about intellectual property and espionage. Huang’s warning emphasizes that Washington and Beijing have larger agendas, with tech companies caught in the middle.

In conclusion, Huang’s message is clear: China lagging in chip tech should not be ignored. The US holds a nanosecond lead in chip tech, and competition, if managed wisely, could strengthen global chip technology leadership while avoiding a split tech world.