#USChinaTensions

Is America losing the semiconductor market to China?

The Biden 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 gain control over 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 delivering a significant victory to China as it propels their businesses related to electronic chips forward," adding that "once they achieve competitiveness, they will start selling around the world and people will buy their chips."

He explained that when 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 have informed regulators this week that they expect to incur significant financial damage 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 drain of up to $800 million from the company's net profits, according to documents filed with the U.S. Securities and Exchange Commission.

$TAO