U.S. semiconductor export controls announced in October 2022 triggered a $130 billion aggregate market-cap loss for targeted U.S. firms, with the Federal Reserve Bank of New York documenting statistically significant declines in revenue, profitability, bank credit, and employment among affected companies. Rather than find alternative buyers, affected U.S. firms report chilling effects on new relationships with both targeted Chinese firms and third-party suppliers globally, who prefer non-U.S. sources to avoid future restrictions. Concurrently, Chinese firms targeted by the controls formed new partnerships with domestic suppliers and accelerated indigenous chip development: Huawei and SMIC jointly achieved 7-nanometer production, a capability U.S. controls aimed to prevent, while Qualcomm faces over $10 billion in lost revenue from lost Chinese handset sales. The controls thus undermine the economies of scale U.S. semiconductor makers depend on while accelerating Chinese self-sufficiency in advanced technologies.
452 other tracked developments touching the same claims.