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The three giant global chip companies, Intel, NVIDIA and Qualcomm have recently met with the United States government about trade between these companies and the Chinese market.
CEOs from these three companies, including Intel's Pat Gelsinger, NVIDIA's Jensen Huang and Qualcomm's Cristiano Amon met with the United States government delegation, including commerce secretary Gina Raimondo, National Economic Council director Lael Brainard. and the director of the National Security Council, Jake Sullivan.
This meeting was reported by sites such as Reuters and Bloomberg and did not have many details about it, but what was announced was that the meeting of the three chief executive officers of this company with the government was to discuss the sale of semiconductor chip components and equipment to develop them. certain to companies in China.
A large number of sanctions introduced by the United States government will soon come into effect, and it is expected that more stricter sanctions will be introduced soon to ensure that the Chinese government cannot obtain this new technology for purposes such as military and also intelligence.
The request of these companies is likely to be for this restriction to be relaxed a little so that it does not affect the total sales and profits of these companies. NVIDIA's graphics card sales in the Asian market in particular are as high as 20 percent of the company's total product sales, and for Qualcomm, 60 percent of their component sales are in the region.
So far it is also not known what the resolution will be after this meeting takes place, but our expectation is that all these parties will find that it will be difficult for them to find a middle ground on this issue. It is also possible that the United States government will try to reduce the number of industries that will be subject to this technology restriction, or at least limit the types of components that can be sold to Chinese technology companies.