The Biden administration's efforts to impose additional restrictions on semiconductor sales to China met resistance from major American chip companies, including Nvidia Corp (NASDAQ: NVDA), Intel Corp (NASDAQ: INTC), and Qualcomm Inc (NASDAQ: QCOM).
These firms argue that such regulations would not only harm their businesses but could also inadvertently boost China's independent chip industry, the New York Times reports.
The administration aims to prevent Beijing from accessing technology essential for modern weapons. However, the chip giants have been lobbying against these measures, warning of their severe impact on their revenues and the U.S. semiconductor industry.
The companies' pushback has been significant, involving meetings with top officials like Secretary of State Antony J. Blinken and Commerce Secretary Gina M. Raimondo.
They have argued that limiting sales to China could reduce technology development, jobs, and spending on semiconductor factories in the U.S. China accounts for a substantial portion of the global semiconductor market and is a significant revenue source for these companies.
This development comes after the U.S. government committed $50 billion to the semiconductor industry through the CHIPS and Science Act to bolster American chip manufacturing and counter China.
Price Action: NVDA shares traded lower by 0.88% at $442.93 on the last check Friday.