Last month, the U.S. Department of Commerce imposed rules to cut-off China’s supply to key chips and components for supercomputers. This has put U.S. companies under heavy restrictions to export machinery to Chinese companies that are manufacturing chips of a certain sophistication.
However, this move is expected to create near-to-medium-term volatility in the semiconductor industry, especially in the earnings of U.S. companies with considerable exposure to the Chinese market.
