American policymakers designed sanctions that were intended to deprive Chinese companies of cutting-edge chips, and the technology to make them. But they also deprived chipmakers and chipmaking gear companies of its biggest markets of customers, which wiped out huge sources of revenue for our companies. And they also pushed Chinese firms to develop their own semiconductor industry, out of necessity.

Now they have. Chinese foundries are mass-producing chips that not only sufficiently supply most of the Chinese markets, but are now exporting billions of chips annually, selling to global buyers at price points far below US chipmakers' production costs.

Resources and links:

Wolfstreet, Nvidia, Supermicro Make Huge Mess of AI-Semiconductor Mania, Netflix Plunges, Big Tech Follows
https://wolfstreet.com/2024/04/19/nvi...

Reuters, China bets on open source as US export controls mount https://www.reuters.com/technology/ch...

Nasdaq, Stocks fall on ME tensions and chip stock weakness https://www.nasdaq.com/articles/stock...

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