China's chip industry defies US sanctions: an unexpected optimism!

China's chip industry defies US sanctions: an unexpected optimism!

In the long-fought world of semiconductors, the first reactions to the new US sanctions show up several Chinese chip companies. According to the report of krone.at , companies such as Jiangsu Nata Opto-Electronic Materials and Empyrean are hardly any disturbances in their business. While Empyrean plans to get away from foreign suppliers faster, Jiangsu Nata speaks of well -filled material bearings and the opportunity to find local alternatives. It is important to note that experts from investment bank Jefferies predict a dramatic decline in investments by $ 30 percent to $ 35 billion for the Chinese chip industry in the coming year.

The new measures aim at China's dependence on foreign machines, including key companies such as ASML and Applied Materials. This development is classified as significant because the imports of machines for chip production have risen by a third to $ 24.12 billion in the first nine months of 2024. In the expectation of future sanctions, Chinese companies seem to have preferred their orders, which also makes the current situation complicated.

The big players in the chip industry

The chip industry is currently affected by sometimes serious changes. According to Gevestor , companies such as Samsung Electronics and Intel are among the largest half-ladder manufacturers worldwide. Samsung runs with sales of $ 83 billion, followed by Intel with $ 75.5 billion. These companies have benefited enormously from the increased demand for semiconductors that shot up during the pandemic and are now under pressure to defend their market shares in a rapidly changing environment.

The role of the United States as the restrictioner of international trade relationships in the technology industry takes on a central position. While the US government is trying to slow China's technological progress, companies like AMD, Intel and Nvidia are facing a potential decline in sales in an important market. Mortijn Rasser, managing director of a specialized industry service, warns that China's Achilles' heel sanctions can affect and have a massive effect on the technology sector of the People's Republic.