Biden playing with fire?The consequences of cutting off Huawei's supply have put U.S. companies in a desperate situation
The United States has released Huawei pigeons more than once, and starting in 2019, the United States will not allow Google to provide GMS services to Huawei, and from then on limit the proportion of Huawei using American technology.
To date, no U.S. technology has been provided to Huawei unless it has obtained a shipping license. Biden is playing with fire, and the consequences of cutting off Huawei are unimaginable, otherwise American companies such as NVIDIA will be forced to go out of business.
Facing the American four-wheeler"Sanctions"Although Huawei has not committed to it, it has actively responded to it. It is not possible to use Google's GMS service to create your own HMS service, which is not supported by the operating system in your own research. The remaining components are also transferred to domestic first-class business cooperation, and even independent research and development of imaging systems to maintain the operation of the mobile phone business.
Not to mention, Huawei is also constantly exploring in the fields of smart cars and cloud services, in order to gain a firm foothold in the market and let itself live a quality life to repay all the efforts.
The effect is also obvious, Huawei gradually turned losses into profits in 2022 and will continue to work hard in 2023. The U.S. has implemented four rounds of rules, but they don't intend to stop there, and there are signs of further revisions to the rules.
It is estimated that many people know that the United States intends to cut off all American companies from Huawei, and will not allow Huawei's ** 4G chips, artificial intelligence and high-performance computing.
The rules are mutual, and if Huawei can't get its hands on the product, U.S. companies can't get sales. Most U.S. companies have cooperation with Huawei, for example, Huawei needs to buy Snapdragon processors from Qualcomm, CPU chips from Intel, and GPUs from Nvidia.
This collaboration has allowed American companies to generate a lot of revenue, but for most American companies, revenues and profits are declining, so the cooperation with Huawei seems very important.
Biden believes that he has not yet realized the problem, according to foreign media reports, if the United States continues to apply the rule, Nvidia will have to suspend the plan to Huawei ** technology, which will hinder the agreement between Nvidia and Huawei, or will have a huge economic impact on Nvidia.
NVIDIA**'s GPUs can provide Huawei with data center, cloud computing and other business support, and use NVIDIA's high-end GPU products to ensure computing performance.
Of course, if Nvidia really can't supply, GPU manufacturers such as Jingjiawei, Moore Core Wire, and Huaren Technology can also become substitutes. There may be a gap in overall performance, but as long as domestic manufacturers are given enough time to achieve a breakthrough, it is not impossible.
At a time when Huawei is once again turning to domestic first-class business cooperation, NVIDIA's orders can only be handed over. Nvidia's performance is not good, if even Huawei's order cannot be completed, I am afraid that Nvidia will be forced into a dead end.
According to the financial report released by NVIDIA, the revenue for fiscal year 2023 will be 269$7.4 billion, essentially stable compared to fiscal 2022. However, Nvidia's net profit was only 43US$6.8 billion, down 55% year-on-year;Gross margin was 569%, down 8% year-on-year.
The rest of the key indicators such as operating profit and commercial aircraft sales have shown a downward trend, and the magnitude is not small.
Seeing such performance estimates, people wonder, is this still the period of NVIDIA?In 2021, there will be a global core shortage, and NVIDIA's graphics cards will be in short supply, and low-end graphics cards can be speculated for tens of thousands of yuan. Many people have the idea of hoarding cards and embark on the crazy road of commercial card hoarding.
At that time, Nvidia's performance was booming, coupled with the fact that there were no excessive restrictions from US rules, and Chinese companies began to work closely together, so Nvidia's net profit in fiscal year 2022 was 975.2 billion US dollars, equivalent to 67.9 billion yuan, can be said to be a lot of money.
As a result, a year has passed, and NVIDIA's profit has increased by more than half, and if it falls again, it is unknown whether NVIDIA can adhere to R&D projects.
The company will even join the wave of layoffs at Microsoft, Amazon, Intel and other U.S. companies. While things haven't gotten to this point yet, Nvidia still can't take things lightly.
Now Nvidia has two paths: one is to find more customers to work with, and the other is to mediate with the United States to avoid applying the rules. If you take the first road, you may not be able to find more and more suitable customer orders, China is the world's largest chip consumer market, and Nvidia is looking for it in China.
Huawei is already a first-tier customer, and going further may not be able to bring Nvidia ideal sales. As for the second way, the choice is not in the hands of NVIDIA, but only determined by NVIDIA's status as a private company, and if the will of the authorities is changed, NVIDIA cannot decide.
So Nvidia can only go with the flow, even if it suffers huge economic losses.
But this is someone else's business after all, and since the United States does not have the interests of American companies, there is no need for others to worry about it. I only hope that Huawei can find ways to tide over the difficulties, and continue to push forward in ideas and technology research and development projects, so as to achieve a real turnaround.