China Remains Crucial for US Chipmakers Despite Growing Geopolitical Strains

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China continues to be a vital market for US semiconductor companies despite escalating geopolitical tensions. Due to China's huge demand for chips, US chipmakers generate billions yearly from China. Export controls discussed by the US could disrupt chipmaker sales and operations in China if it retaliates against American tech. China is advancing its domestic semiconductor industry by investing billions of yuan in subsidies to enhance local manufacturing in response to technology access restrictions imposed by the U.S. and the Netherlands.