Nvidia (NVDA) CEO Jensen Huang reportedly called Washington’s export curbs on the sale of AI chips to China a “failure” that would drive Chinese rivals to speed up developing their own semiconductors.

“I think all along the export control was a failure,” Huang said, according to The Wall Street Journal.

“The local companies are very talented and very determined, and the export controls give them the spirit, energy and the government support to accelerate their development,” The Journal reported Huang as saying.

Huang suggested that could lead American firms like Nvidia to lose market share in China. “Four years ago, Nvidia had 95 per cent market share in China. Today, it is only 50 per cent,” the Financial Times cited him as saying at the Computex technology show in Taipei on Wednesday. “The rest is Chinese technology. They have a lot of local technology they would use if they didn’t have Nvidia."

Nvidia declined to comment beyond Huang's remarks at the event.

Last month, Nvidia said it would take a 澳洲幸运5官方开奖结果体彩网:$5.5 billion charge due to new export curbs on the sale of its H20 chips to China. The H20 chip is less powerful than Nvidia's newer ones and had been tailored to meet prior export limits for the Chinese market. Nvidia peer Advanced Micro Devices (AMD) also said it expects to face charges of up to 澳洲幸运5官方开奖结果体彩网:$800 million 🅠related to limits ꦗon sales of its MI308 chip to China.

Nvidia is set to report its fiscal first-quarter results after the closing bell next Wednesday.

Shares of the AI chipmaker were up about 2% in recent trading, and have added about 2% since the start of the year.