https://wccftech.com/semiconductor-players-falter-as-china-gears-up-for-silicon-war-by-accelerating-the-development-of-local-chips/

Semiconductor players in the U.S. and Taiwan are facing a deluge of selling today amid the specter of a vicious silicon war as China attempts to develop its domestic chip industry on a war footing.

We have been reporting ad nauseum on the Trump administration’s efforts to hammer China’s broader tech sector in general and Huawei – Beijing’s crown tech jewel – in particular. The final nail in the proverbial coffin came in August when the U.S. Commerce Department refused an extension in Huawei’s temporary license, effectively barring the company from sourcing any semiconductor that incorporates American intellectual property or software. Moreover, the department also broadened the Foreign-produced Direct Product (FDP) rule, which subjects foreign goods employing American technology to U.S. regulations, by imposing similar restrictions on Huawei’s affiliates as well. The squeeze on Huawei has been so severe that analysts have openly begun to speculate as to the company’s prospects of entirely exiting the smartphone business.