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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 that these efforts may backfire and fuel innovation in Chinese companies, which could help them dominate the global semiconductor market.

French news agency AFP quoted Jack Gold saying that what is really happening is that "the U.S. government is delivering a big win 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.

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 terms for semiconductors exported to China.

Nvidia expects the new rules to cost it $5.5 billion, while AMD anticipates 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.

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