China's Chipmaking Investments Top US, Taiwan, South Korea Combined: What It Means For Nvidia, ASML
Portfolio Pulse from Natan Ponieman
China's significant investment in semiconductor manufacturing, surpassing the combined spending of the US, Taiwan, and South Korea, could impact major chipmakers like Nvidia and ASML. Despite sanctions, China remains a key market for these companies, with substantial sales contributions.
September 03, 2024 | 10:02 pm
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ASML could face reduced sales as China invests heavily in domestic chip production. China has been a major market, representing 49% of ASML's sales in recent quarters.
ASML's sales in China, which represent 49% of its recent sales, could be impacted by China's increased investment in domestic chip production. The shift towards self-sufficiency in semiconductors may reduce ASML's market share in China.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Nvidia faces potential challenges as China's investment in domestic chip production could reduce its sales. Despite restrictions, China remains a significant market, contributing 12% of Nvidia's quarterly sales.
China's increased investment in domestic chip production could reduce Nvidia's sales in the region. Despite restrictions, China remains a significant market for Nvidia, contributing 12% of its quarterly sales. However, the shift towards domestic production could impact future sales.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
VanEck Semiconductor ETF, the largest semiconductor ETF, fell nearly 7% amid concerns over China's growing domestic chip production.
The VanEck Semiconductor ETF fell nearly 7% due to concerns over China's growing domestic chip production, which could impact the sales of major semiconductor companies included in the ETF.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
iShares Semiconductor ETF fell nearly 7% as China's investment in domestic chip production raises concerns for semiconductor companies.
The iShares Semiconductor ETF fell nearly 7% due to concerns over China's increased investment in domestic chip production, which could affect the performance of semiconductor companies within the ETF.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Taiwan Semiconductor's shares fell over 5% as China's domestic production capabilities improve, potentially challenging TSM's market position.
Taiwan Semiconductor's shares fell over 5% due to concerns about China's improving domestic chip production capabilities. This development could challenge TSM's market position as China aims for self-sufficiency in semiconductors.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70