#WORD_OF_THE_DAY_BINANCE #USChinaTensions

Is America losing the semiconductor market to China?

The U.S. administration is trying to restrict the export of strategically important computer chips to China, but experts say these efforts could backfire and fuel innovation in Chinese companies, helping them gain control of the global semiconductor market.

French news agency AFP quoted Jack Gold as saying that what is actually happening is that "the U.S. government is giving China a big victory by pushing 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 that happens, it will be difficult for American semiconductor manufacturers to regain the market share they lost.

American leading semiconductor company "NVIDIA" and its competitor "AMD" informed regulators this week that they expect to face significant financial damage as a result of the 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 on the company's net profits, according to documents filed with the U.S. Securities and Exchange Commission.

$TAO