#USChinaTensions #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 fuel innovation in Chinese companies, helping them to dominate the global semiconductor market.

The French news agency quoted Jack Gold as saying that what is actually happening is that "the U.S. 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 around the world and people will buy their chips."

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

Prominent U.S. semiconductor company Nvidia and its competitor AMD informed regulators this week that they expect to incur significant financial damages 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.

$TAO