Nvidia's Chinese Rivals Gear Up For Trump's Return With New Strategies - Overseas Expansion, Hire Foreign Talent And More

Amid the anticipation of Donald Trump‘s return to the U.S. presidency, Nvidia’s NVDA Chinese rivals are preparing for potential challenges by implementing new strategies. China’s semiconductor industry is focusing on acquiring foreign chipmaking equipment, recruiting international talent, and forming new alliances to bolster its resilience.

What Happened: Chinese chip companies are exploring partnerships with nations and firms that might be alienated by Trump’s policies. This approach aims to enhance self-sufficiency, Reuters reported based on over 30 articles and research notes from Chinese chip companies and analysts following Trump’s election victory.

Zhu Jing, deputy secretary-general of the Beijing Semiconductor Industry Association, encouraged Chinese firms to expand overseas and attract foreign talent, anticipating potential benefits for China’s semiconductor industry under Trump’s policies.

See Also: Trump White House Could Unlock Trillion-Dollar AI Potential For Tesla, Says Dan Ives

During Trump’s first term, Chinese telecom giants Huawei and ZTE, along with chipmaker SMIC, were placed on trade blacklists. In contrast, the Biden administration imposed broad export controls to restrict China’s access to advanced U.S. chips.

Why It Matters: The potential return of Trump to the presidency has already impacted the semiconductor landscape. Following Trump’s election win, chip stocks like Nvidia Corp NVDA, Broadcom Inc AVGO, and Taiwan Semiconductor TSM experienced gains. The Biden administration had previously restricted China’s access to advanced AI chips, citing national security threats.

Meanwhile, U.S.-listed Chinese stocks like Alibaba Group Holding Ltd BABA and JD.com Inc JD saw declines after Trump’s win, reflecting concerns over potential trade conflicts. A renewed Trump administration might escalate U.S.-China tensions, prompting Chinese leaders to consider economic stimulus measures to counteract potential impacts.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari