China's semiconductor strategy - More independence from US companies

The sudden cancellation of 350 billion dollars worth of chip orders has sent shockwaves through the global semiconductor industry, hitting US technology giants in particular. This unprecedented move resulted in a staggering 10 trillion dollar loss in market value for American companies such as Intel $INTC (-1,13 %) and Qualcomm[1] $QCOM (-0,52 %) . The catalyst for this upheaval was China's tariff data, which revealed a 21% year-on-year drop in chip imports[1], indicating a major shift in China's semiconductor strategy.

This development is in line with China's broader efforts to reduce dependence on foreign technology and strengthen its domestic chip industry. The country's push for technological self-reliance, coupled with the perceived ineffectiveness of the US CHIPS Act, has accelerated this trend[1]. As a result, the global semiconductor supply chain is undergoing a dramatic restructuring, with Chinese companies increasingly relying on domestic suppliers or non-US alternatives. This shift not only challenges the dominance of US chipmakers, but also raises concerns about the long-term competitiveness of American technology companies in the global marketplace[2][3].

#tech
#tariffs
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$NVDA (+0,58 %)

Sources

[1] Breaking! $350 billion chip orders canceled, U.S. companies - Binance https://www.binance.com/en/square/post/22733265150521

[2] Tariffs on China could upend tech industry, increase prices of ... https://www.abcactionnews.com/politics/economy/tariffs-on-china-could-upend-tech-industry-increase-prices-of-electronics

[3] China Stands Firm Amidst Tariff Chaos https://www.eetimes.com/china-stands-firm-amidst-tariff-chaos/

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