Analysts Warn US Could Be Handing Chip Market To China

Analysts say US chipmakers like Nvidia, whose CEO Jensen Huang is seen here, will face intensified competition from China and other countries due to new constraints imposed by the US government on chip sales to China (Credit: AFP)

As the Trump administration attempts to choke off exports of strategically important computer chips to China, experts say the effort might well backfire, fueling innovation at Chinese firms that could help them seize the world semiconductor market.

"What's actually happening is that the US government right now is handing China a big win as it tries to get their own chip business going," said Jack Gold, principal analyst at J.Gold associates.