#USChinaTensions

Is America losing the semiconductor market to China?

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

Agence France-Presse reported Jack Gold saying that what is happening is that "the U.S. government is giving China a big win by pushing 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 that happens, it will be difficult for American chip 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 suffer 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 anticipates a hit of up to $800 million to the company's net profits, according to documents filed with the U.S. Securities and Exchange Commission.