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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 yield counterproductive results that could fuel innovation in Chinese companies, helping them gain control of the global semiconductor market.

The French news agency quoted Jack Gold as saying that what is really happening is that "the U.S. government is giving China a big victory as it pushes their semiconductor-related businesses forward," adding, "Once they achieve competitiveness, they will start selling worldwide and people will buy their chips."

He explained that once 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 suffer 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 predicted that it would drain up to $800 million from the company's net profits, according to documents filed with the U.S. Securities and Exchange Commission.

$TAO