0555 GMT - The U.S.'s cancellation of validated-end user status for Chinese units of some global chip makers could hurt the companies more than China, Jefferies analysts say in a research note. Neither Samsung nor SK Hynix makes superhigh-end memory products in their Chinese fabs, while TSMC likely produces legacy chips in China, the analysts say. These chip-making plants aren't important for China's AI efforts, they add. The analysts view the move as a U.S. response to Beijing's guidance to avoid using Nvidia's H20 chips. Jefferies thinks China might use its rare-earths leverage to get the U.S. to relax export controls on chip equipment. If Trump is willing to budge on this, it could be a big positive surprise to the market in 2026, it says.(sherry.qin@wsj.com)

(END) Dow Jones Newswires

September 05, 2025 01:55 ET (05:55 GMT)

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