#USChinaTensions

Is America losing the semiconductor market to China?

The U.S. administration is trying to restrict exports of strategically important computer chips to China, but experts say its efforts may backfire and fuel innovation in Chinese companies, helping them gain control of the global semiconductor market.

The French press agency quoted Jack Gold as saying that what is really happening is that "the U.S. government is giving a big win to China by pushing their semiconductor-related businesses forward. Gold added, 'Once they achieve competitiveness, they will start selling around the world, and people will buy their chips.'

He explained that once this happens, it will be difficult for American semiconductor manufacturers to regain the market share they lost.

The prominent American semiconductor company 'NVIDIA' and its competitor 'AMD' informed regulators this week that they expect to incur significant financial damages due to new U.S. licensing conditions for semiconductors exported to China.

NVIDIA expects the new rules to cost it $5.5 billion, while AMD estimated it could drain up to $800 million from the company's net profits, according to documents filed with the U.S. Securities and Exchange Commission.