Trump’s Move for Chips: Increasing Pressure on China

The Trump administration is reportedly seeking to intensify controls on the chip sector. It is also stated that restrictions could be imposed on Nvidia’s chip sales. In the U.S., the Trump administration is working to tighten controls on the chip sector. According to Bloomberg, the Trump administration plans to strengthen semiconductor restrictions on China by continuing and expanding the Biden administration’s efforts to limit Beijing’s technological power. Within this framework, American officials recently met with their Japanese and Dutch counterparts to restrict Tokyo Electron and ASML engineers from having semiconductor hardware in China. It was indicated that the U.S. administration wants to see key allies complying with China restrictions. It was reported that Trump requested allies to adopt practices towards American companies such as Lam Research, KLA, and Applied Materials as well. Furthermore, there are aims to restrict the quantity and type of Nvidia chips exported to China. After the news, Japanese chip companies’ shares fell, with Tokyo Electron leading the decline by 4.4 percent.