$BTC #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 could backfire and fuel innovation in Chinese companies, helping them dominate the global semiconductor market.

French news agency AFP quoted Jack Gold saying that what is happening is that "the U.S. government is giving China a big win by pushing 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 clarified 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 as a result of 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.

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