Nvidia (NVDA) is set to report its earnings on Wednesday amid strained relations between the US and China. Former White House CHIPS Coordinator Aaron "Ronnie" Chatterji joins Catalysts to discuss what these tensions mean for Nvidia and the chip sector as a whole.

"Five to 10 years from now, you're going to see mega factories producing chips across the United States," Chatterji explains, pointing to funding provided by the Biden Administration's CHIPS Act. He adds that the act "is a diversified bet," as it invests in multiple firms and different kinds of chips to boost all parts of the sector.

The CHIPS Act will also create new jobs, which will require training programs to be established all over the country. "It is a big hill to climb and we got to start working on it as fast as we can," Chatterji says.

Chatterji explains the act is about "building a strong industrial base in the United States for key technologies," and is both a national security and supply chain measure. He argues restrictions do not negatively impact chip companies, explaining, "You can see this with Nvidia in particular. Every time the new export controls have been announced, they designed compliant chips to send to other parts of the world. So as long as you have the interaction between the major chip designers, the companies that are manufacturing them, and all across the tech stack with knowledgeable people inside the government, I think you can get that balance right and that's what you're seeing so far."

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This post was written by Melanie Riehl