As the United States tightens restrictions on semiconductor exports to China, analysts are sounding alarms that the policy may unintentionally accelerate China’s efforts to dominate the global chip market, reads a Star post.
“What’s actually happening is that the U.S. government is handing China a major win,” said Jack Gold, principal analyst at J. Gold Associates. “Once Chinese firms become competitive, they’ll expand globally—and U.S. companies may struggle to regain that ground.”
Nvidia and AMD, two of America’s leading chipmakers, have reported significant projected losses due to new U.S. export licensing rules. Nvidia warned regulators the changes could cost the company up to $5.5 billion, while AMD estimated a potential $800 million hit, according to recent filings with the Securities and Exchange Commission.
The restrictions specifically target advanced chips like Nvidia’s H20 and AMD’s MI308, both designed for AI and high-performance computing. These products, tailored for the Chinese market under previous guidelines, now face fresh licensing hurdles.
Independent tech analyst Rob Enderle predicts Chinese firms, led by Huawei, will ramp up domestic innovation in response. “It’s a godsend for China,” he said. “This could fast-track their rise in microprocessors and GPUs.”
Experts warn that U.S. policy may be isolating American companies from key markets, while allies look elsewhere for technological partnerships.
“Trump thinks he can bully his way through trade policy,” said Gold. “But the global economy doesn’t respond well to that. These restrictions may push allies closer to China.”
Despite the headwinds, Nvidia CEO Jensen Huang remains confident, stating the company can still advance AI technology while complying with U.S. regulations.
Wedbush analyst Dan Ives underscored Nvidia’s pivotal role. “The Trump administration knows Nvidia powers the AI revolution,” he said. “That’s why they’ve drawn a line with China.”
Ives cautioned, however, that the chip conflict is far from resolved: “Expect more punches to be thrown—by both sides.”
Bd-pratidin English/ Jisan
