China's Ambitious Chip Fund Faces Headwinds Amid Economic Challenges and US Restrictions
Portfolio Pulse from Anusuya Lahiri
China's Big Fund, aimed at bolstering the semiconductor industry, is struggling to meet its $41 billion target due to economic hardships and US restrictions. The fund, which has previously supported local chip giants and R&D initiatives, is now facing hesitancy from local governments and state-owned enterprises due to financial constraints and the current economic downturn. The fund remains committed to its five-year plan, with a focus on chipmaking equipment. US restrictions have affected Nvidia Corp and Advanced Micro Devices, Inc's chip sales to China.

September 27, 2023 | 11:39 am
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NEGATIVE IMPACT
Advanced Micro Devices, Inc is affected by the US semiconductor embargo that prevents China from acquiring its sophisticated artificial intelligence chips.
The US embargo on semiconductors has barred China from acquiring AMD's sophisticated AI chips. This could potentially impact AMD's sales and revenue, leading to a negative short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Nvidia Corp is affected by the US semiconductor embargo that prevents China from acquiring its sophisticated artificial intelligence chips.
The US embargo on semiconductors has barred China from acquiring Nvidia's sophisticated AI chips. This could potentially impact Nvidia's sales and revenue, leading to a negative short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80