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Is America losing the semiconductor market to China?

The administration of the U.S. president 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.

French news agency reported that Jack Gold stated that what is actually happening is that "the U.S. government is giving a major victory to China as it propels their semiconductor-related businesses forward,” adding, “Once they achieve competitiveness, they will start selling worldwide and people will buy their chips.”

He clarified that when this occurs, it will be difficult for U.S. chip manufacturers to regain the market share they lost.

The prominent U.S. semiconductor company "Nvidia" and its competitor "AMD" informed regulators this week that they expect to face significant financial damages due to the new U.S. licensing conditions for semiconductors exported to China.

Nvidia estimates that the new rules will cost it $5.5 billion, while AMD expects it to drain 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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