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Japan Times
18-07-2025
- Business
- Japan Times
Trump's U-turn on Nvidia spurs talk of grand bargain with China
Only a few years ago, the administration of former U.S. President Joe Biden declared export controls a "new strategic asset' to help the U.S. maintain "as large a lead as possible' over China in advanced technology. U.S. President Donald Trump is now upending that approach. In a reversal this week, the White House told chipmaker Nvidia it could soon resume sales of its less advanced China-focused H20 artificial intelligence accelerator. Advanced Micro Devices received similar assurances from the U.S. Commerce Department. Explaining the decision, Commerce Secretary Howard Lutnick said the administration wanted Chinese developers "addicted' to American technology, while insisting the U.S. wouldn't sell China "our best stuff.' That, he said, required a more balanced policy that would keep the U.S. "one step ahead of what they can build so they keep buying our chips.' The shift in strategy, which angered China hawks in Washington, raises a key question as Trump sets the stage for a meeting with Chinese President Xi Jinping later this year: How far will the U.S. go in rolling back a range of measures restricting business between the world's biggest economies imposed in the name of national security? "The apparent loosening of export control on the H20 chips could be a sign of things to come,' said Kevin Xu, a tech investor and founder of U.S.-based Interconnected Capital who formerly worked in the Obama administration. "A wide range of bargaining chips are on the table now for a potential U.S.-China tech grand bargain: Semiconductor manufacturing equipment, rare earths, battery technology, AI chips, even mutual market access.' While the U.S. is a long way off from dismantling the bulk of restrictions on China, spanning everything from export controls to investment curbs to sanctions, Trump's recent actions open the door to redefining the economic relationship between the nations mere months after his imposition of 145% tariffs took them to the brink of decoupling. Talks in Geneva and London then led to a truce in which the U.S. agreed to lower tariffs and ease export controls in return for rare-earth magnets used to make goods like smartphones, electric vehicles and high-tech weapons. Nvidia's Blackwell GPU chip. The White House said the chipmaker could soon resume sales of its less advanced China-focused H20 artificial intelligence accelerator. | bloomberg Even though Trump's first term changed the conversation in Washington to focus on the threat posed by China, the U.S. president has always been transactional and less rigid on traditional national security issues. Trump has downplayed privacy issues over TikTok and on the campaign trail made comments welcoming Chinese automakers to build plants in the U.S. "He is not ideologically fixated on the need to have controls everywhere,' said Dominic Chiu, a senior analyst at Eurasia Group. "So, if he sees that as a bargaining chip that he can use to gain concessions from China on rare earths and other things, then he would do it.' The move adds to the goodwill built over a recent flurry of diplomacy, including a cordial meeting between U.S. Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi in Malaysia. Treasury Secretary Scott Bessent, who led the previous trade talks, expects to meet his counterpart, Vice Premier He Lifeng, within "the next couple of weeks' and has signaled the U.S. will likely extend an Aug. 12 deadline for the snapback of sky-high tariffs. The two sides are now inching toward what could be a series of agreements, if not a single grand deal, ahead of a potential leaders' meeting that analysts speculate could happen around the Asia-Pacific Economic Cooperation summit that kicks off in late October in South Korea. After meeting his Chinese counterpart last week, Rubio said such a sit-down was likely without suggesting a timeframe, saying the two sides will have to "build the right atmosphere and the right deliverables.' He added that "there's a strong desire on both sides to do it.' For the Trump administration, the objectives may look a lot like the president's first-term playbook: securing large-scale Chinese purchases of American goods to address the persistent trade deficit. He may also demand more Chinese action to curb the flow of fentanyl precursors — an area where Trump on Wednesday praised Beijing for already making "big steps.' Washington is also seeking a resolution to the future of video app TikTok's U.S. operations and assurances that Beijing won't weaponize its control over rare earths and other critical minerals. China, for its part, has an ambitious wish list. Among them is the complete rollback of U.S. tariffs, including the 20% duties linked to fentanyl and the legacy tariffs from Trump's first term that were upheld by Biden. Beijing may also push for an easing of investment restrictions and, crucially, further concessions on U.S. export controls, which it views as a direct attempt to stifle its technological advancement. Kurt Tong, a former U.S. consul general in Hong Kong and a partner at The Asia Group, said while Biden adopted a non-negotiable "small yard, high fences' approach to technology, Trump has a different focus and is looking to show his transactional tack can bring results for the American people. "He cares about trade, deficits, investment in the United States and getting along with China,' Tong said. That could make welcoming Chinese investment in the U.S. — which would also help rebalance bilateral trade — an appealing notion to Trump, as he alluded to in his campaign remarks. "In general, in this town, that is a forbidden suggestion,' said Washington-based Gerard DiPippo, associate director at the RAND China Research Center. "However, if there's one president who might go for it, it's Trump.'
Bloomberg
15-07-2025
- Business
- Bloomberg
Big Banks Post Earnings, Nvidia Wins China Reprieve
On Bloomberg Businessweek Daily, Tim Stenovec and Emily Graffeo give the latest on earnings from JP Morgan, Citi, Wells Fargo and BlackRock. They also discussed Nvidia and AMD's trade war reprieve after the Trump administration told Nvidia they would green-light export licenses for its H20 artificial intelligence accelerator, the company said in a blog post on Monday — a move that may add billions to Nvidia's revenue this year. On today's episode, Cathy Seifert, Vice President at CFRA Research, on BlackRock's latest earnings along with Bloomberg's Sonali Basak, Sri Natarajan, and Ian King. (Source: Bloomberg)
Yahoo
11-07-2025
- Business
- Yahoo
MRVL's Modular Packaging Tech: Can it Transform AI Accelerators?
Marvell Technology MRVL uses advanced CMOS technologies at 5nm and 3nm nodes and is now shifting toward 2nm and below, which include innovations like gate-all-around transistors and backside power delivery. For advanced packaging solutions, Marvell Technology has been leveraging Chip-on-Wafer-on-Substrate and Integrated Fan-Out methods, which enabled it to develop complex 2.5D, 3D, and 3.5D designs for high-performance compute Application Specific Integrated Circuit. Marvell Technology is now enhancing its capabilities with modular redistribution layer (RDL) interposer technology as an alternative to traditional silicon interposers. This 2.5D packaging technology can be used to develop multi-die AI accelerator solutions that are 2.8 times larger compared to existing single monolithic dies and integrate four HBM3/3E stacks across six RDL layers. The RDL interposer technology also offers shorter die-to-die connections to reduce latency and improve power efficiency. As the RDL solution is modular in nature, it allows seamless replacement of defective dies, which finally reduces costs and increases yields. The technology is compatible with HBM3/3E, XPU-type chips, and is expected to be qualified for the upcoming HBM-4. These factors have made it attractive for hyperscalers to use it readily. As data center infrastructure investments grow at a rapid pace, Marvell Technology is expected to capitalize on it. MRVL anticipates that its total addressable market for data center semiconductors will rise to $94 billion by 2028. It expects its accelerated custom compute offerings to reach $55.4 billion with a CAGR of 53% from 2023 to 2028. Broadcom's AVGO advanced 3.5D XDSiP packaging platform is specifically designed to enhance the performance and efficiency of custom AI XPUs for AI accelerators. Broadcom's Semiconductor segment, which accounts for its custom silicon solutions, grew 11% year over year in the first quarter of fiscal Micro Devices AMD is another player in the custom silicon solutions and AI accelerator space with its semi-custom SoC offerings and Instinct Accelerators that power numerous data centers. Advanced Micro Devices' reconfigurable Alveo Adaptable Accelerator Cards are used to speed up compute-intensive applications in data centers. While Broadcom and Advanced Micro Devices are formidable players in the custom silicon space for AI accelerators, Marvell Technology's move toward the 2.5D packaging platform and leveraging of modular RDL interposer technology is likely to push it much ahead of other players in this space. Shares of MRVL have lost 34.5% year to date against the Electronics - Semiconductors industry's growth of 15%. Image Source: Zacks Investment Research From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 7.02X, lower than the industry's average of 8.72X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Marvell's fiscal 2026 and 2027 earnings implies year-over-year growth of 77.7% and 27.73%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward in the past seven days. Image Source: Zacks Investment Research Marvell Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
