Part 2/11:
In 2024, the challenges facing the chip industry became clearer as the Biden administration moved to restrict advanced chip sales to China. Notably, companies like Nvidia, Intel, and Qualcomm were directly impacted by these restrictions. Qualcomm, for instance, derives nearly 50% of its revenues from the Chinese market, an alarming statistic when considering the role of sustained revenue in funding research and development (R&D).
The stakes are high in the semiconductor realm, characterized by intense competition and significant R&D investments. In 2023 alone, Intel and Qualcomm allocated $15 billion and $8 billion, respectively, towards R&D, reflecting the harsh realities of remaining competitive in a sector where technological advancement is rapid and relentless.