China A Lost Market For Nvidia, AMD? The Asian Superpower Reportedly Sets Up Biggest Semiconductor Fund To Nurture Advanced Chipmaking
Portfolio Pulse from Shanthi Rexaline
China has set up its largest-ever semiconductor investment fund, Big Fund III, with $48 billion to nurture its domestic chipmaking industry. This move could impact U.S. chipmakers like Nvidia and AMD, which are already facing revenue contractions in China due to U.S. government restrictions.
May 27, 2024 | 3:49 pm
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NEGATIVE IMPACT
Applied Materials may see a decline in demand from China as the country invests $48 billion in its domestic semiconductor industry.
The new semiconductor fund in China could lead to a decrease in demand for Applied Materials' products as China focuses on developing its own semiconductor industry.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
AMD may experience a decline in revenue from China as the country establishes a $48 billion fund to enhance its domestic semiconductor capabilities.
The establishment of China's semiconductor fund could lead to increased competition for AMD in the Chinese market, potentially reducing its revenue from the region.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
ASML may face challenges in the Chinese market as China invests $48 billion in its domestic semiconductor industry, potentially reducing demand for ASML's chipmaking equipment.
China's investment in its semiconductor industry could lead to a decrease in demand for ASML's chipmaking equipment as China aims to develop its own capabilities.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Nvidia may face increased competition and reduced revenue from China as the country sets up a $48 billion semiconductor fund to boost its domestic chipmaking industry.
China's significant investment in its semiconductor industry could reduce Nvidia's market share and revenue in China, especially given the existing U.S. restrictions on chip exports to China.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
NEUTRAL IMPACT
The iShares Semiconductor ETF may face mixed impacts as China's $48 billion semiconductor fund could increase competition for U.S. chipmakers while also highlighting the importance of the semiconductor industry.
While the fund could increase competition for U.S. chipmakers, it also underscores the growing importance of the semiconductor industry, which could have mixed effects on the iShares Semiconductor ETF.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 50
POSITIVE IMPACT
The iShares MSCI China ETF may benefit from China's $48 billion investment in its semiconductor industry, potentially boosting the performance of Chinese tech stocks.
China's significant investment in its semiconductor industry could positively impact Chinese tech stocks, potentially benefiting the iShares MSCI China ETF.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60