Trump Team Seeks to Toughen Biden’s Chip Controls Over China
Published On Feb 25, 2025, 12:10 AM
The Trump administration aims to tighten restrictions on semiconductor exports and technology access to China, following initiatives started under President Biden. Key allies, including Japan and the Netherlands, are being pressured to align with the U.S. approach, which includes curbs on companies like Nvidia, and its discussions on enhancing existing regulations. This could lead to prolonged supply chain challenges in the semiconductor industry and affect companies producing semiconductor equipment. Meanwhile, shares in Japanese chip manufacturers have already started to decline as news of these potential restrictions emerge.
Stock Forecasts
NVDA
Negative
The tightening of semiconductor export controls and pressure on allies to match U.S. restrictions could lead to operational challenges and reduced revenue for companies reliant on exports to China. This might negatively impact stock prices in the semiconductor sector, particularly for affected companies like Nvidia and its suppliers.
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