Tensions between the US and China are already impacting companies such as Nvidia, which has had to ship less powerful chips to China, affecting its revenue. Apple's iPhone sales have also slumped in China, partly due to competition from Huawei. The final decision on sanctions against Huawei-linked firms is yet to be made and may depend on the status of US-Chinese relations in the coming months.
Key takeaways:
- The Biden administration is considering imposing new sanctions on several Chinese semiconductor firms linked to Huawei Technologies.
- The US government plans to allocate $8.5 billion in grants to Intel for the construction and expansion of new chip facilities across the country.
- This is part of an ongoing effort by the US to curb China's chip industry and boost its own semiconductor manufacturing and AI capabilities.
- These moves have already had an impact on US companies, with Nvidia having to ship less-powerful chips to China and Apple's iPhone sales slumping in the country.