#BinanceLeadsQ1 #USChinaTensions

Is America losing the semiconductor market to China?

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

French news agency AFP quoted Jack Gold as saying that what is actually happening is that "the US government is giving 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 American semiconductor manufacturers to regain the share they lost in the market.

Prominent American semiconductor company Nvidia and its competitor AMD informed regulators - this week - that they expect to face significant financial damage due to new US licensing conditions for semiconductors exported to China.

Nvidia expects the new rules to cost it $5.5 billion, while AMD anticipates that it will drain an amount up to $800 million from the company's net profits, according to documents filed with the US Securities and Exchange Commission

$TAO