US sanctions helped speed up semiconductor market in China

By forbidding companies like Nvidia to sell their products to China, the United States ended up stimulating local market growth. This is one of the conclusions of a report released by Digitimes, which stated that the eastern country is quickly adapting to new market conditions.

The restrictions imposed by the US authorities, coupled with tariffs adopted against the economic rival, aimed to prevent it from growing rapidly. While in some specific cases this worked, they are more punctual than situations where the measures did not work.

Nvidia’s own CEO Jensen Huang acknowledged that export controls to China were a mistake. Not only did your company have been a billionaire damage, but the imposed restrictions ended up resulting in an opportunity for Huawei to grow and dominate the AI ​​-special hardware market.

Growth of companies in China remains high

As an example of how the Chinese market has adapted, Digitimes cites the case of Zhen Ding. By adopting a “China for China” strategy, the company was able to increase its annual revenue by 23% by betting on higher investments in its substrate business.

The company is expected to continue expanding and may even increase its activities in Taiwan to be able to deal with increased internal demand. The report also points out that “United States sanctions may be accelerating Chinese semiconductor ambitionsAnd the country “may emerge stronger in the face of adversities”.

While companies like Huawei technically stay behind Nvidia in their products, the fact is that now they have the opportunity to grow in an environment with less competition. Although the US has suspended its new rates against the country for 90 days, many believe this is an irreversible situation – even if President Donald Trump gives up the tariff war he started.

Fonte: Tom’s Hardware, Digitimes