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SHANGHAI, CHINA – AUGUST 28: Boats travel on the Huangpu River as the skyline of the city is is … More seen, including the Oriental Pearl TV Tower and the Shanghai Tower, on August 28, 2020 in Shanghai, China. (Photo by Kevin Frayer/Getty Images) Getty Images Nvidia is planning a new office and facility in Shanghai. Which makes sense. Already a huge market, China continues to grow. That’s why it’s puzzling that Sen. Jim Banks (R-IN) and Sen. Elizabeth Warren (D-MA) are protesting Nvidia’s growth mainland expansion. In a letter written to Nvidia CEO Jensen Huang, Warren and Banks claim a facility in Shanghai “raises significant national security and economic security issues that warrant serious review.” The senators are incorrect three times, and surely more. It’s best to start with simple commercial and economic realities. China is once again a huge, and growing market. For Nvidia to not prioritize the sale of its world-leading products in China would be like Gucci turning up its nose to Beverly Hills. And that’s an understatement. Banks and Warren would perhaps pivot to the importance of keeping innovative technology out of the hands of an alleged enemy, except that there’s no way to do that. With market goods, there’s no accounting for their final destination. While Nvidia can choose its customers, it can’t choose its customers’ customers. Translated, so long as Nvidia is producing chips, its chips will find their way to China. Which means there’s no way to keep mimicking foreign eyes off American production, nor American eyes off of foreign production. As longtime Nvidia employee Dwight Diercks has said, “Everyone takes a look at their competitors’ hardware and how it works.” Well, yes. Luckily the present of chipmaking is invariably the past. As Huang himself put it to Stephen Witt (author of…

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Filed under: News - @ June 2, 2025 7:28 pm