Does America lose 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 could backfire, potentially fueling innovation in Chinese companies, which would help them dominate the global semiconductor market.

French news agency AFP reported that Jack Gold stated that what is happening is that "the U.S. government is providing a huge victory for China as it pushes 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 when this happens, it will be difficult for American semiconductor manufacturers to regain the market share they have lost.

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 anticipated a drain of up to $800 million from the company's net profits, according to documents filed with the U.S. Securities and Exchange Commission.