A partner at a Chinese semiconductor investment fund has welcomed the U.S. government’s ban of certain advanced chip types to be exported to China, describing the move as “great news” which may stimulate a domestic ecosystem.
Chloe Wang, a partner and vice-president at the Guangzhou-headquartered Yang Cheng Fund, said: “We received the very great news this morning, and I didn’t feel surprised about the U.S. [which] continued to ban the H100 and 800 exports to China,” Wang told CNBC’s East Tech West conference in the Nansha district of Guangzhou, China, on Wednesday.
The U.S. Department of Commerce is set to prevent the sale of some advanced artificial intelligence (AI) chips to China, it announced on Tuesday, over concerns they could be used for military development purposes. This will restrict the export of chipmaker Nvidia‘s A800 and H800 chips, officials said.
Nvidia’s H100 chip, used by AI firms in the U.S., was banned for sale in earlier U.S. government restrictions.
Wang said the fund invests in semiconductor companies, including those in the AI training and autonomous vehicle sectors. One AI chip company Yang Cheng has invested in will launch its initial public offering this year, while a Shanghai-based AI chip firm is valued at more than $3 billion, Wang added, though she didn’t name the firms.
“We believe those kind of upstream chipmakers — they will drive, or they will play the leading role in China, and they will create their own ecosystem,” Wang added. “And maybe we can, not too much rely on the Cuda system,” she said, referencing Nvidia’s AI software.
“I still feel quite confident about the Chinese entrepreneurs as well as the consumer base market,” she added.
Wang said there are around 1,500 companies in China that are involved in the design of integrated circuits (IC) and a “shortage” of companies in the AI chip training sector, with around 20 start-ups in the space.
China wants to increase its computing power by 50% by 2025, according to a plan by several Chinese ministries announced in October. Doing so is seen as a key way of developing AI, which needs advanced semiconductors to process vast amounts of data.
The U.S. government ban is designed to prevent China’s access to advanced semiconductors “because they could be used for military uses and modernization,” U.S. Commerce Secretary Gina Raimondo said on a call with reporters Tuesday. They’re not intended to hurt Chinese economic growth, U.S. officials added.
The chip, made by China’s SMIC, has sparked concern in Washington and raised questions about how it was possible. There’s also scrutiny on whether the process being used to make these new chips is efficient enough on a large scale to sustain a Huawei comeback.
CNBC’s Kif Leswing and Arjun Kharpal contributed to this report.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
