However, fabricating semiconductors is a big leap from assembling smartphones, computers and EVs and requires a highly skilled workforce, something which is already becoming an issue in nations like Taiwan and Singapore. The nation has been building its high-tech industry over a few years now and although it's nowhere near some of its neighbouring nations, Vietnam is likely to become an important player when it comes to assembly in the not too distant future, alongside India. Considering the current demand for NVIDIA's chips, this might not be too much of a challenge for the company though.Īccording to a news post by Reuters, Vietnam is the latest nation that is trying to become a semiconductor manufacturing nation, albeit its plans are nothing like what China is doing, instead the nation is trying to woo existing semiconductor companies to build fabs in Vietnam. The US government will implement these new export restrictions from November, which obviously didn't give NVIDIA much of a chance to avoid them and it looks as if the company is going to have to find new customers for the AI chips. The share price recovered somewhat in the afternoon, putting NVIDIA back in the trillion dollar club.īased on a statement to Reuters, NVIDIA doesn't seem overly concerned, despite what appears to be huge loss in sales, with a company spokesperson issuing the following statement "These new export controls will not have a meaningful impact in the near term".
This made NVIDIA's shares drop sharply when the market opened in the US earlier today, by close to five percent, dropping NVIDIA's market cap below the US$1 Trillion mark. The orders are said to have been heading for Alibaba, ByteDance and Baidu, as well as possibly other major tech companies in China.
Commerce Department seems to have thrown a big spanner into the NVIDIA machinery, by informing the company that some US$5 billion worth of AI chip orders for China falls under the latest US export restrictions.
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