#MarketRebound #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 these efforts may backfire and could fuel innovation in Chinese companies, helping them gain control over the global semiconductor market.

Agence France-Presse quoted Jack Gold as saying that what is really happening is that "the U.S. government is delivering a big victory to China as it pushes their semiconductor-related businesses forward." Gold added, "Once they achieve competitiveness, they will start selling worldwide and people will buy their chips."

He explained that when this happens, it will be difficult for U.S. semiconductor manufacturers to regain the market share they have lost.

The prominent American semiconductor company "Nvidia" and its competitor "AMD" informed regulators this week that they expect to face significant financial damage 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 projected that 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.

$TAO