U.S. Chipmakers Feel China Restrictions

TECH
U.S. Chipmakers Feel China Restrictions

U.S. chipmakers are feeling the impact of Washington’s export controls, as recent earnings reports from Applied Materials and Lam Research reveal a decline in China-related revenue. Applied Materials, the largest U.S. chip equipment manufacturer, saw its China revenue drop 25%, now making up just 31% of total sales. Lam Research also reported a 10% decline in sales to China, citing export restrictions and regulatory uncertainty.

China remains a dominant player in the mature chip market, producing essential components for consumer electronics and vehicles. The U.S. has imposed strict export controls since 2019, restricting China’s access to advanced chips and manufacturing equipment. Initially, this led to a stockpiling rush, boosting U.S. chipmakers' revenues. However, China is now investing heavily in domestic chip production, reducing reliance on foreign suppliers.

While India and Southeast Asia aim to grow their chip sectors, replacing China’s manufacturing scale and consumer demand remains a significant challenge for the global semiconductor industry.

FINANCE
U.S. Gold Reserves Under Scrutiny

Recent attention has centered on U.S. gold reserves, particularly Fort Knox, amid speculation about revaluing gold to market prices. While Treasury Secretary Scott Bessent dismissed this possibility, Bank of America analyst Francisco Blanch suggested it would boost gold prices and validate its role as a modern financial asset.

The U.S. holds 261.6 million troy ounces of gold, officially valued at $42.22 per ounce, totaling $11 billion. However, at today’s market price of $2,950 per ounce, the real value exceeds $750 billion.

President Donald Trump and Elon Musk have expressed interest in visiting Fort Knox to confirm the reserves' existence. Meanwhile, central banks continue to increase gold purchases, fearing sanctions on dollar reserves.

Blanch noted that revaluing gold wouldn’t align with Trump’s economic priorities, such as weakening the dollar and reducing inflation. However, speculation continues, particularly as U.S.-Russia economic relations evolve with potential energy trade discussions.

FINANCE
Prosus Acquires Just Eat for $4.29B

Prosus has agreed to acquire Just Eat Takeaway for €4.1 billion ($4.29 billion) in cash, creating the fourth-largest food delivery company globally. The offer, at €20.30 per share, represents a 49% premium to the stock’s three-month average and was unanimously approved by Just Eat’s management and supervisory boards.

Prosus sees strong growth potential, leveraging its industry expertise, AI innovations, and logistics capabilities to enhance Just Eat’s operations. CEO Fabricio Bloisi emphasized the deal’s role in creating a European tech leader, complementing Prosus’ global food delivery portfolio.

Just Eat CEO Jitse Groen highlighted the company’s stronger profitability and European focus, noting Prosus' support would accelerate expansion into food, groceries, and fintech.

The acquisition is still subject to regulatory approvals, but if finalized, it positions Prosus as a dominant player in Europe’s competitive food delivery market.

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