Arm, Nvidia CEOs Warn US Chip Sanctions Hurt Industry, Consumers in China

Arm Holdings CEO Rene Haas and Nvidia CEO Jensen Huang have both criticized U.S. export controls on advanced semiconductors to China, arguing these restrictions hinder technological progress and ultimately harm consumers and companies. Haas warned that limiting access to technology shrinks the market and stifles innovation, highlighting Arm's significant presence in China. Huang expressed skepticism that the U.S. will lift these export controls following recent trade talks, revealing Nvidia will exclude China from its future revenue forecasts due to the restrictions. Both executives highlighted that the sanctions have inadvertently accelerated China's domestic semiconductor development, with Chinese firms like Huawei advancing rapidly. Despite the challenges, Nvidia posted strong revenue growth but missed out on billions in potential sales to China, while Arm’s stock faces modest downside risks amid ongoing geopolitical tensions. The U.S. administration, led by President Donald Trump, continues to maintain strict curbs on high-end AI chips while exploring limited easing on other microchips, reflecting a nuanced approach to balancing national security and economic interests.