Chip Ban on China

Chip Ban on China, US President Joe Biden continues Trump’s march,

as he has implemented stricter rules that represent a development in
tightening the screws on Beijing strongly.

It is expected that this tightening will be due to China’s access to

American semiconductor technology,

which constitutes strong commercial and geopolitical advantages for China,

but the choice of time was not in their favour and the This affected the

shares of chip industry leaders around the world.

While America insists on not allowing China to enter that industry

through the latest restrictions,

it imposed preventing access to equipment and software for chip manufacturing that

China used to manufacture chips of 14 nanometers or less,

China is determined to catch up with foreign semiconductor leaders and move forward,

where the majority of The manufacturing capacity in the country is 28 nanometers and more,

unlike TSM, which manufactures chips up to 5 nanometers for its customers.

The smaller the nanometer, the more advanced the chip becomes.

This is what China aspires to, the global industry goal at the moment,

at a time when America is standing by.

While Washington has been sending signals about its policies for several months.

Biden’s current tightening regime would like to exacerbate already existing problems,

reaping its profits by taking control of a system such as semiconductors.

The chip market witnessed a major crash, with Philadelphia Semiconductor,

which is the largest measure of the market, losing about 9% in just two days.

The reaction of the American system sparked the reaction of the

American system To tighten the screws on those in charge of this industry,

especially after stopping dealing with Chinese companies.

The current stagnation due to raising interest rates may lead to the
demand for foil used in iPhone devices,

despite the amount of suffering that the market has faced over the past two years.

Earnings next Thursday.

However, analysts will focus differently on any signal that helps them show the

problems away from any Washington actions,

including spending plan and revenue growth targets as well as any inventory
level that represents the overall shape of the chip pumping machine in the market.

Lamm Research shares fell 12% over two days due to its strong association
with China as it depends on approximately 31 % of its sales from
China and will be greatly affected in the future by these strict rules.

TSM American Depository Receipts have declined)
by about 9% during the past two days as well,

while its shares listed in Taiwan fell last Tuesday by about 7.1%
(after the National Day holiday last Monday),

which constitutes the largest drop during the day in 27 years.

This massive decline defies logic if we simply link it to the latest US measure,

because the company gets only 10% of its revenue from China,

the chip market may be severely affected by these measures as
it has been suffering for so long before the intervention of US policy

that could decimate what is left of it on her hand.

Chip Ban on China

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