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Is America losing the semiconductor market to China?

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

According to Agence France-Presse, Jack Gold stated that what is actually happening is that "the U.S. government is giving a big win to China by pushing 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 lost.

Prominent American semiconductor company "NVIDIA" and its competitor "AMD" informed regulators - this week - that they expect to face significant financial damage due to 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 to the company’s net profits, according to documents filed with the U.S. Securities and Exchange Commission.

$TAO