U.S. Tightens AI Chip Export Restrictions, Impacting Major Semiconductor Firms

The escalating U.S.-China trade tensions have resulted in substantial financial repercussions for major semiconductor firms. Nvidia anticipates a $5.5 billion loss due to inventory and commitments linked to its H20 chips, which were in high demand in China. AMD expects an $800 million hit, highlighting China’s significance as a market.

Dutch chip machinery manufacturer ASML also warned of increased uncertainty due to U.S. tariffs. These measures aim to curb China’s military and AI advancements, citing national security risks.