Agence France-Presse reported today (April 20th): "The Trump administration of the United States is attempting to block the export of strategically important computer chips to China, but analysts believe that this move may backfire and say that the U.S. may end up handing over the chip market to China."

Jim Gold, chief analyst of J.Gold Associates, told AFP that this move by the U.S. will push Chinese enterprises to innovate and help them seize the global semiconductor market. He said: "The reality is that the current actions of the U.S. government are allowing China to achieve a great victory. Once they become competitive, they will start selling their chips worldwide and people will buy them. American chip manufacturers will find it difficult to reclaim lost market share at that time."

There is no doubt that through the new national system, China has sufficient resources and motivation to develop its chip industry and achieve self-reliance in core technologies. The U.S. suppression efforts are completely like kicking oneself in the shins.

China is one of the largest chip markets in the world, and international chip giants such as Intel, AMD, and NVIDIA have previously laid out plans for the Chinese market. With the implementation of the U.S. chip export ban, these companies will lose the vast Chinese market, which will severely impact their revenue. For example, NVIDIA's stock price plummeted due to the export ban, with its market value evaporating by more than 180 billion U.S. dollars overnight. According to statistics from the U.S. Chamber of Commerce, if the U.S. completely bans sales to China, American chip companies could lose as much as 83 billion U.S. dollars annually, leading to the loss of 120,000 jobs.

The chip industry is highly globalized. By restricting chip exports, the U.S. disrupts the stability of the global semiconductor supply chain. On one hand, U.S.-based chip companies will lose feedback and cooperation from the Chinese market, which may slow down their product iteration and innovation speed. On the other hand, U.S. related enterprises may face the risk of supply chain disruptions, as 60% of materials such as silicon wafers and photoresists come from Japan and Taiwan. The obstruction of technical exchanges and cooperation will affect the long-term development of enterprises. Additionally, the U.S. government's ban has caused concerns and uncertainties within the industry, making it difficult for companies to formulate investment and development strategies, which is not conducive to the overall development of the U.S. chip industry.

Source: https://www.toutiao.com/article/1829920339729475/

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