On the other hand, more global companies will be better off due to mitigating factors, such as temporary licenses, relatively smaller contributions from advanced chips and related equipment from China, and companies exploring options to bypass the US ban such as the modification of chips and production processes.
The Singapore research team at DBS Group Research, along with analysts Ling Lee Keng, Sachin Mittal and Jim Au, see that Chinese chip companies are likely to be the hardest hit in the ongoing chip war between the US and China.
“Among Chinese companies, we see the most impact on chip manufacturers (IDM/fabless) followed by the foundries,” the team writes in their Nov 22 report. “We do not expect a material impact to equipment manufacturers and software developers, as China’s current technology is way behind the thresholds mentioned in the latest curbs.”
