Trump’s stunning U-turn on export controls means that whatever the economic outcome for the US, Silicon Valley wins, writes @parmy (via @opinion) https://t.co/B2xb12Y7kS ...

America's AI leadership hinges on maintaining strict export controls on advanced chips and creating a federal transparency standard for AI development.We look forward to working with policymakers on both sides of the aisle on these issues.Read more: https://t.co/7KFOAlFYLl ...

中国国家出口管制工作协调机制办公室在广西南宁召开打击战略矿产走私出口专项行动推进会，要求坚决防止绕道出口，严防相关物项被非法用于军事用户或军事用途。 https://t.co/YdvUw7tzvH ...

What more do we know about this Nvidia announcement and what it tells us about the Trump administration's thinking on export controls. Well, I think it's interesting that it was Nvidia who announced this, Not the White House. I'll get to that and what that means in a little bit.But essentially, this is a great victory for CEO Jensen Huang, who, by the way, is in Beijing right now, just appeared on state television. And we learned of this development on the H 20 chip through a blog post from Nvidia, essentia ...

US-China Trade & Tech Policy - The Trump administration is showing a reversal of chip design software export restrictions to China, benefiting Cadence and Synopsis [1] - China will likely smooth the permit process for materials it recently restricted, including rare earth, in exchange for the US lifting chip software export curves [2][9][10] - The policy flip reinforces President Trump's pattern of using tech restrictions as negotiating leverage rather than permanent policy tools [5] Company Impact (Cadence & Synopsis) - Cadence's stock was up 5%, and Synopsis's stock was up almost 5% following the news [2] - Mazuo suggests Trump's chip software U-turn could restore 10% to 12% of total revenues for both Cadence and Synopsis that were at risk [2] - The move resolves restrictions on electronic design automation (EDA) tools that control 70% of China's chip design market [3] Implications for Other Tech Companies - Tougher export controls on advanced AI processors from Nvidia and AMD could face similar reversals as trade negotiations progress [4] - Nvidia's H20 AI chips designed specifically for the Chinese market to comply with prior export controls still remain restricted [5] - Huawei's advanced chips are quite impressive, more advanced than the H20s from Nvidia [13]

Market Trends & Export Controls - US lifts export controls on chip design software to China, benefiting companies like Cadence Design, Synopsis, and Seaman's [1] - The Nasdaq is aiming for its eighth positive session out of the last nine [1] Company Impact & Beneficiaries - It is not a certainty that the mentioned companies will continuously benefit from the US lifting export controls [2] - EDA software tools are being exchanged for mineral rights, which is seen as a positive development unless overall trade relations with China deteriorate [3] - There is hope that Nvidia chips might be able to re-enter the Chinese market more significantly [3] Nvidia & Chip Capabilities - Nvidia may not be able to sell its highest-end chips in China [5] - Optimism exists for Nvidia to sell a toned-down version of Blackwell in China [5] - A toned-down Nvidia chip might have only 20% of the capabilities of a leading-edge chip [7] Security Concerns & Containment Policy - Concerns exist about security implications related to easing export controls [6] - The current policy of containment regarding China's chip capabilities has been largely unsuccessful [10] - China is using lower-performing chips and increased energy to overcome limitations [9] - China has been accessing chips through various means, including cloud services in different countries [10]

Geopolitical & Trade Relations - US leverages export controls on technology as a bargaining tactic against China to secure rare earth magnet supplies [1] - China demonstrates its capabilities independent of advanced US semiconductors [1]

IPO and Market Dynamics - Integrity Specialty Insurance celebrated an IPO at NASDAQ [1] - Chime, a consumer financial technology company, also had an IPO [1] - Market experienced a lower open at 6022 [1] Trade and Export Controls - Discussion revolves around rare earth licenses, with potential revisiting in six months [2] - Focus shifts from tariffs to export controls on both Chinese rare earths and US chips [2] - China requested leniency on chip export controls, denied for defense but potentially granted for other products like airplanes [2]

Core Insights - The U.S. export restrictions on advanced semiconductors are pushing China to develop domestic alternatives, with Huawei being a key player in this effort [1][3][6] AI Chip Design - Nvidia is recognized as the leading AI chip designer, but it does not manufacture the chips itself; it relies on foundries for production [5] - Despite U.S. restrictions, demand for Nvidia chips remains high among Chinese customers, although Nvidia has faced challenges in selling its H20 processor to China [6][7] - Huawei's HiSilicon is making progress in GPU design, with its Ascend 910B and upcoming Ascend 910C chips showing significant advancements, though still behind Nvidia [9][10] AI Chip Fabrication - Nvidia's manufacturing is primarily done by TSMC, which is compliant with U.S. export controls, limiting Huawei's access to advanced chip production [11][12] - SMIC, China's largest foundry, is behind TSMC in technology, officially capable of producing 7-nanometer chips but suspected of working on a 5-nanometer chip for Huawei [13] - Huawei is reportedly working on its own fabrication capabilities, but lacks essential manufacturing equipment [14] Advanced Chip Equipment - Export controls from the Netherlands restrict SMIC's access to advanced lithography machines from ASML, which are crucial for producing advanced GPUs [15][16] - SMIC has attempted to circumvent these restrictions using less advanced lithography systems, but this approach has limitations [17] - Chinese companies like SiCarrier Technologies are exploring alternative lithography technologies, but achieving comparable capabilities may take years [18] AI Memory Components - High Bandwidth Memory (HBM) is essential for AI applications, with South Korean companies like SK Hynix leading the market [19][20] - Chinese firms such as ChangXin Memory Technologies are in the early stages of HBM production but face significant challenges, including export controls [21][22] - Huawei relies on foreign HBM supplies for its Ascend 910C processor, highlighting the ongoing dependence on international suppliers despite domestic advancements [24]

INFLATION IN, UP .3%. KATIE: A GREAT ROUND UP. ONE OF THE TOP STORIES THIS MORNING.THE OTHER TOP STORY IS THE WHITE HOUSE CELEBRATING A STRING OF TRADE WINS. THE U.S. AND CHINA ESTABLISHED A FRAMEWORK -- A FRAMEWORK FOR IMPLEMENTING THE GENEVA TRADE AGREEMENT BUT IT STILL NEEDS APPROVAL FROM PRESIDENT TRUMP AND TRIP -- AND PRESIDENT XI. AND AN APPEALS COURT ALLOWED TRUMP TO CONTINUE ENFORCING HIS TARIFFS THROUGH JULY.TYLER, BRING US TO THE TRADE FRAMEWORK THAT WE SEEM TO HAVE ESTABLISHED WITH CHINA, WHAT DO ...