Arm CEO Warns Chip Sanctions On China Are Counterproductive For USA

Arm Holdings ARM CEO Rene Haas condemned the U.S. sanctions on China in tandem with Nvidia Corp NVDA chief Jensen Huang. He said it would compromise overall technological advances and impact consumers and companies.

Haas discussed the repercussions of restricting access to technology in the ecosystem to Bloomberg on Thursday at the Founders Forum Global conference in Oxford.

He emphasized Arm’s significant footprint in China.

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President Donald Trump confirmed the China trade deal on Thursday after two days of negotiations in London. The U.S. said it will continue applying 55% tariffs on selected Chinese imports, while China will impose a 10% tariff rate on U.S. goods.

Haas acknowledged Nvidia’s moat while expressing conviction on Arm’s range of edge, from training and inference in the data center to running something as small as earbuds.

The semiconductor companies warned against the Nvidia sanctions, which could prompt China to develop its industry and, thus, harm the U.S.

Haas said Chinese competitors have evolved, citing the example of Huawei Technologies Co. The Trump administration had blacklisted Huawei in 2019, citing national security threats.

The 2020 pandemic further disrupted supply chains, triggering the global semiconductor chip crisis. It prompted countries to reduce their dependence on China and boost their domestic semiconductor positions instead.

In April, the Trump administration imposed sanctions on exports of data center processors to Chinese customers, which cost Nvidia about $8 billion in Chinese revenue during its second fiscal quarter.

Washington and Beijing ended the latest trade negotiations this week, with Donald Trump declaring a deal to restore the flow of critical metals from China.

Price Actions: ARM stock is down by 1.53% at $136.50 premarket at last check Friday. NVDA is down 2.1%.

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