The Chinese side is trying not to leave the US actions to introduce higher customs duties on imports of its products to this country unanswered, but has already made it clear that it does not see any economic sense in exceeding the 125% threshold with its own import duties. According to experts, Intel will suffer significantly from the trade war.
Image Source: Intel
This is stated in their analytical note by Wells Fargo representatives. In their opinion, the very fact that the company’s revenue in China has reached a share of 29% determines the degree of Intel’s dependence on the Chinese market. Note that the company has not yet publicly calculated how much the actual ban on deliveries of Gaudi family computing accelerators to China will cost it. In principle, this area of Intel’s business has not yet developed so much as to seriously harm Intel. Another thing is that the company is now in dire need of money and is not ready to sacrifice any sources of revenue.
A separate issue for Intel is the origin of the bulk of semiconductor components supplied to China. Since they are manufactured in the United States, their import in China will be taxed at a rate of 84 to 125%. At the same time, products from its main competitors, AMD and Nvidia, are nominally considered to be manufactured in Taiwan, and therefore will be subject to a lower duty rate. This will inevitably undermine Intel’s competitive position in the Chinese market.