$TRUMP #USChinaTensions

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 these efforts could backfire and fuel innovation in Chinese companies, helping them take control of the global semiconductor market.

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

The 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 anticipated 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