Nvidia, AMD Could Stand To Gain Big Time As Japan Proposes $7 Billion Chip Deal In Trump Tariff Talks Amid China Export Curbs: Report

Benzinga ^ | Ananya Gairola

[RoosterRedux]

Japan is reportedly planning to import nearly $7 billion worth of U.S.-made semiconductors in a move that could significantly benefit chipmakers like Nvidia Corporation amid ongoing trade negotiations with the Donald Trump administration.

What Happened: Japan has proposed purchasing up to 1 trillion yen ($6.94 billion) in U.S. semiconductor products, reported Reuters via Asahi newspaper, which cited unidentified sources.

The Japanese government would subsidize domestic companies that purchase the American chips, the report said. The plan is designed to help reduce the U.S.'s approximately 10 trillion yen trade deficit with Japan.

Japan's chief tariff negotiator, Ryosei Akazawa, is expected to visit the U.S. around May 30 for a fourth round of trade discussions, the report added.

Why It's Important: Last month, shares of Nvidia and AMD encountered renewed pressure after the U.S. government imposed new restrictions on AI chip exports to China and several other areas.

China continues to be a key market for Nvidia, with it contributing 13% of its revenue in the last fiscal year. However, CEO Jensen Huang earlier this year said that the company's market share in China has dropped sharply, from 95% prior to 2022 to just 50% now.

[thinden]

$NVDA earnings out today?

[RoosterRedux]

Yup. Conference call at 5:00 pm.

[Wuli]

I think Samsung in Korea is ahead of Japan in Chips.

I think the pecking order right now is:

Taiwan
South Korea
United States
Japan

[RoosterRedux]

Taiwan is the leader in chip fabrication. Not chip design/development. Nvidia is the world's leading chip designer/developer.

In terms of design/development, I would suggest this pecking order:

1. United States

2. South Korea

3. China

4. Japan

5. Europe

6. Taiwan

Caveat: China is strong in AI chip ambitions and volume of development, but weak in cutting-edge execution due to sanctions.

[dfwgator]

You don’t think China has lots of moles in those Taiwan companies?

[RoosterRedux]

Yep.

[Wuli]

I think you are right in the matter of chip design.

But it is insufficient to lead into the future if you are not also leading in production and failing to lead so much you are relying on others for that production. And that is not even the whole of it when you consider the intellectual property theft of designs sent to others for production.

[RoosterRedux]

I agree. It makes me very nervous that we are so dependent on Taiwan.

[posterchild]

Yup. Conference call at 5:00 pm.

I will hear it at 4:00 pm. I can tell you what they say an hour in advance for a fee :)

[RoosterRedux]

I call Nazi Pelosi. I’ll sell to her as insider information.;-)

[packrat35]

I need to buy some more tomorrow...