The 2024 Taipei International Computer Show opened on June 4, attracting attention as NVIDIA CEO Huang Renxun arrived in Taiwan ahead of schedule. At a banquet on May 30, Huang stated that “Taiwan is one of the most important countries in the world” and pledged to continue investing in Taiwan. This statement sparked controversy among Chinese internet users, although the Chinese authorities did not respond, and mainland media ignored the remarks. Experts noted that by confronting the “father of AI” Huang Renxun, the Chinese Communist Party’s usual “patriotic” tactics seemed to have backfired this time.
Huang Renxun, an American entrepreneur of Taiwanese descent, hosted a banquet at a popular nostalgic Chinese restaurant in Taipei on the evening of May 30. Among those present were executives from companies such as ASUS, ASRock, Foxconn, Pegatron, Wiwynn, Quanta, Yulon, Inventec, Delta Electronics, Yidong, Gigadevice, China Telecom, nearly encompassing the entire Taiwanese server and PC manufacturing industry.
During the banquet, Huang Renxun responded to questions in English, stating that “Taiwan is one of the most important countries in the world.” He emphasized NVIDIA’s business collaborations in Taiwan, from semiconductor manufacturing to system integration, and expressed the company’s commitment to further investing in Taiwan and expanding AI infrastructure in the country.
Huang Renxun’s remarks stirred controversy on Chinese social media platforms. While some Chinese netizens called for retaliatory actions against NVIDIA, others expressed frustration due to the lack of alternative technologies available in China.
In recent years, the Chinese Communist Party has often used its internet army, known as the Fifty Cent Party, and nationalist internet users to pressure foreign enterprises and public figures to adhere to the “One China” principle. Despite closely monitoring Huang Renxun’s visit and statements in Taiwan, mainland media outlets did not mention his comment that “Taiwan is one of the most important countries in the world,” and Chinese official channels remained silent.
Financial expert Huang Shicong of Taiwan told Epoch Times on June 4 that NVIDIA’s chips, especially AI chips, lead the wave of AI development globally. While the US government restricts NVIDIA from selling chips to China, the company still shows willingness to do so. Even though the chips available to China may differ significantly from mainstream products, they are purchased nonetheless, illustrating China’s hesitation to offend Huang Renxun.
“They practice a pragmatic form of patriotism, which is clearly hypocritical. If you advocate for territorial division or have such intentions, but are important to me, I won’t criticize you. I’ll only criticize you when I no longer need you,” Huang explained.
If the Chinese government does indeed counteract NVIDIA and Huang Renxun, it may ultimately harm China itself, noted Huang Shicong.
Lai Rongwei, Executive Director of the Taiwan Inspiration Association, emphasized that China’s silence regarding Huang Renxun’s statements reveals its manipulation of Taiwan’s sovereignty claims for political purposes, while definitions of notions like “Taiwan independence” vary based on political standards.
He emphasized that NVIDIA, under Huang Renxun’s leadership, occupies a leading role in the entire AI industry chain. China hopes that companies like NVIDIA will continue to expand into China to obtain advanced AI technology vital for military and economic competitiveness against the US.
Huang Renxun, who hails from Tainan, Taiwan, is dubbed the “father of AI.” NVIDIA’s AI chips are highly sought after, and China remains a crucial market and revenue source for the company. However, the US has imposed strict export restrictions on chip sales to China since 2022, limiting NVIDIA, AMD, Intel, and others from exporting technology. To bypass these restrictions, NVIDIA developed three AI chips specifically for the Chinese market, albeit of reduced quality.
According to Business Insider, the Chinese government has instructed tech giants like Alibaba, Baidu, the parent company of TikTok, ByteDance, and Tencent to purchase domestically manufactured AI chips to lessen dependence on NVIDIA.
Despite claims that Huawei’s Mate 60 series uses 7nm chips, suggesting China has surpassed US trade restrictions, Huawei’s Executive Director, Zhang Ping’an, admitted their limitation to achieving chips even at 5nm, emphasizing the importance of resolving their 7nm chip production.
Wu Sezhi, researcher at the Cross-Strait Policy Association and consulting member of Taiwanese think tanks, explained on June 4 that due to US high-tech industry sanctions, NVIDIA exports lower-tier chips to China. While China produces some low-tier chips, NVIDIA’s technology stability is preferred. Despite the sensitivity of Huang Renxun’s statements, the Chinese government did not react, placing economic interests over political sensitivities.
“In other words, though politically sensitive, economic sensitivity remains more crucial for the Chinese regime. Clearly, Beijing’s response unintentionally exposes its false display of patriotism,” Wu remarked.
Wu further argued that the global community values national strength and practical market competitiveness. China’s emphasis on ideology or populist maneuvers may ultimately result in self-defeating consequences.
He noted that Taiwan’s free and diverse society fosters technological advancements, while China’s opaque authoritarian regime constrains industrial innovation. Such scenarios are likely to recur, compelling China to navigate dual standards as it prioritizes regime stability.
Huang Renxun’s current visit marks his fifth trip to Taiwan in the past year. Alongside numerous industry CEOs shaping AI development, he pledged continued investment in Taiwan’s AI infrastructure as they participated in the Taipei International Computer Show.
NVIDIA’s presence in the Chinese market faces challenges under US export restrictions. Reports indicate that China accounted for 20-25% of NVIDIA’s data center chip revenue in the past, but due to potential consequences of US export limits, NVIDIA anticipates a significant drop in Chinese revenue shares.
Wu Sezhi emphasized that while NVIDIA still relies on the Chinese market to a certain extent, this reliance has been decreasing over recent years. Xi Jinping’s pursuit of self-reliance faces uncertainties, but partnerships between NVIDIA and multinational corporations remain robust.
“Taiwan’s role in the global semiconductor industry chain has been growing, weakening China’s influence in global industry development. This aligns with the international trend of reducing risk exposure,” Wu pointed out.
Lai Rongwei noted that China’s past economic threats towards Taiwan have limitations. Despite constant references to the Economic Cooperation Framework Agreement (ECFA), related products form only a small fraction of Taiwan’s global exports. China refrains from targeting Taiwan’s high-tech products, as it acknowledges their strategic importance.
Taiwanese companies operate with global considerations within the semiconductor industry, relying on a comprehensive supply chain that includes software from the US, materials from Japan, and equipment from the Netherlands. Ultimately, the US aims to collaborate with countries worldwide, including Taiwan, to counter China comprehensively.