The imposition by the U.S. authorities of further sanctions against high-technology industries in the Chinese economy has caused justified concern among market participants. NVIDIA had to declare last month that a ban on the supply of accelerators to China would force it to lose about $400 million in revenues. At the same time, the supply of consumer processors to China would not be limited by the new US export control regulations, explained the experts.
According to ICwise analysts, after the new measures taken by the US authorities to curb China's development, there is no possibility of reconciliation between the parties. Bernstein explained that, in their current form, US sanctions pose a threat to the supply to China of lithographic equipment, components for supercomputers and artificial intelligence systems, but that standard consumer-class processors will continue to enter the country without any restrictions. Even server processors of a certain range will be supplied to China without particular problems. Another issue is that it is difficult to predict what the PRC's response will be, and they pose a certain threat to the American economy.
In terms of the delivery of lithographic equipment to China, ASML has so far not been able to supply Chinese clients with scanners for ultra-rigid ultraviolet radiation, while DUV equipment has entered the country freely. According to Citigroup analysts, new restrictions may deprive ASML of the right to supply even older DUV scanners to China to work with deep UV; now American regulators, according to SemiAnalysis experts, have virtually unlimited opportunities to block exports of goods from the United States for the benefit of almost any Chinese company. It is legal to restrict their access to advanced goods and technologies for only two months.