Bloomberg Tech: "US Pulls TSMC China Waiver, Tech Stocks Fall"
Date: September 2, 2025
Hosts: Caroline Hyde (NY), Ed Ludlow (SF), and team
Episode Overview
This episode centers on the U.S. government's decision to revoke a critical export waiver for TSMC’s China operations, broadening restrictions on chipmaking equipment to Chinese facilities. The hosts and guests discuss what this move means for the semiconductor sector, the knock-on effects for suppliers, and the broader context of intensifying U.S.-China tech tensions. Further highlights include the ongoing tech stock sell-off, the Magnificent Seven's performance, deep dives into Nvidia and Tesla, the state of fintech IPOs, Crypto.com's new Trump Media partnership, and the latest in generative AI consumer apps. The episode closes with U.S. science funding cuts and what they could mean for space research relative to China.
Key Discussion Points and Insights
1. TSMC China Waiver Revoked & Semiconductor Sector Impact (01:23–05:48)
-
U.S. Pulls Key Waiver for TSMC:
- The U.S. ends TSMC’s waiver allowing imports of essential chipmaking equipment and materials into its Nanjing fab in China.
- Move mirrors Friday’s announcement that Samsung and SK Hynix will also face new restrictions.
- Effective end of 2025; companies have until Dec. 31 to adjust.
-
Industry Implications:
- Facility affected uses older generation, 16nm technology, not cutting-edge—but the move is symbolically significant.
- Adds about 1,000 new license applications for U.S. approval annually, adding delays and operational strain.
- Restrictions focus on preventing upgrades or expanded capacity at Chinese plants.
-
Quote:
"What happened in essence is that the companies lost what is considered really a blanket waiver, a validated end user agreement that they were trusted to be able to ship goods and material into those manufacturing facilities in China for chipmaking. That's ending..."
— Mike Shepherd, Bloomberg Senior Editor [03:37]
2. Tech Stock Sell-off & The 'Magnificent Seven' (05:48–11:40)
-
Market Mood:
- Global bond market sell-off triggers risk-off sentiment in equities.
- Magnificent Seven (Mag 7) tech giants all in the red; Nvidia extends its losses into a fourth straight day.
-
Nvidia’s Influence:
- Profit-taking after rally; concerns over index concentration risk.
- Recent strong earnings, but questions about China revenue and sustainability of hyperscaler-driven growth.
-
Expert Views:
-
Ryan Vasilika, Bloomberg Equity Reporter:
"...a lot of people are starting to feel maybe they're a little bit frothy, maybe there's some room for consolidation on the downside."
[06:53] -
Anthony Saglimbene, Ameriprise:
"It really is about execution...if investors in those companies want a little bit more payback... that's Nvidia's revenue. And so there is a little bit of unease around that."
[08:58]
-
-
Seasonal Trends:
- September historically volatile for markets.
- Fundamentals strong for Big Tech, but "at these stretched valuations, investors should expect a little bit more volatility around these really concentrated names..."
— Saglimbene [11:21]
3. Fintech & IPO Activity – Klarna, Revolut, Gemini (11:40–14:56)
-
Klarna’s IPO:
- Prepares for a possible $14B valuation after pandemic-era highs of $46B; shifting focus to digital banking.
- Broader IPO pipeline heats up after earlier market volatility.
-
Notable Market Trends:
- Secondary share sales at Revolut value the fintech at $75B, as employees can cash out portions of their stakes.
- Gemini, blockchain and crypto-focused, eyes $2.2B IPO.
4. Bloomberg Tech Market Update (14:56–15:28)
- Indexes continue selling off; Nasdaq 100 down amid Nvidia’s losing streak.
- Magnificent Seven under broad pressure.
5. Crypto.com and Trump Media Partnership (17:26–23:46)
-
New Crypto Treasury Business:
- Crypto.com’s CEO Chris Marszalek describes the deal with Trump Media: a joint treasury entity to accumulate more of Crypto.com’s token (CRO), drawing parallels to MicroStrategy’s Bitcoin play.
-
Ongoing Relationship:
- Past collaborations included facilitating Trump Media’s Bitcoin treasury and custody solutions.
-
On Conflicts of Interest:
"Everything is held in blind trust. And this is a publicist company that operates independently."
— Chris Marszalek, CEO, Crypto.com [19:45] -
Crypto.com IPO Prospects:
- Company open to IPO but enjoys private status for agility; reports healthy recent financials.
-
Sports Prediction Market Play:
- Launching sports prediction markets (focus: NFL), aiming to be a leading regulated infrastructure provider in the U.S.
-
Regulatory Adaption:
"We've gone through this journey of cryptocurrency so we are used to...being in the role of a trusted counsel to regulators..."
— Marszalek [22:47]
6. Tesla’s Performance & Elon Musk’s Vision (24:11–35:28)
-
India Launch:
- Disappointing start with just ~600 orders, highlighting challenges in a price-sensitive market.
-
China/Europe Sales Slump:
- Continued weaknesses raise concerns over global demand.
-
Musk’s Focus Shift:
- Claims future value will center on humanoid robots ("Optimus"), aiming to dwarf auto business.
-
Analysis from Craig Trudell (Bloomberg) & Pierre Ferragu (New Street Research):
- Optimus robot is visionary but faces uncertain timelines; auto innovation leadership in China now challenged by BYD and others.
- For Tesla’s robotics/robotaxi ventures, ramp-up will take years and competitive edge is less certain.
-
Quotes:
"Optimus is about creating like humanoid robots that could take billions of jobs on the planet...as long as you remain vague on timeline...yes, it's very easy to imagine..."
— Pierre Ferragu [31:10]"Tesla came into the market five years ago...with like a cost base that nobody could approach...Today...local Chinese competitors are actually capable of being very competitive..."
— Ferragu [33:34]
7. Semiconductor Supply Chain Risks (35:28–36:31)
- Impact of U.S.-China Tensions:
- Limits on TSMC affect suppliers like KLA, Tokyo Electron, LAM Research—all have 20%+ revenue exposure to China.
- Not a "game changer" yet, but could be a longer-term headwind.
8. Generative AI Apps: Andreessen Horowitz’s Top 100 (36:48–44:23)
-
Key Takeaways with Olivia Moore (a16z):
- AI consumer app ecosystem is starting to stabilize, with 14 apps making the list all five times.
- Dominance of ChatGPT, but with a long tail of specialized apps.
- More AI products are being monetized at vertical (specific-task) levels.
- User retention stronger among paid users than free, indicating ROI for targeted users.
- "Power users" story: Olivia shares her app stack, e.g., ChatGPT, Google Ultra, various creative tools.
-
Quotes:
"...There were 14 names that have made every single list, which for the fact that we're only two years into AI means that we're starting to see some really exciting stability."
— Olivia Moore [38:22]"We have the best models in the world from OpenAI, Google…and that allows companies…to build things that will serve customers for more specific use cases."
— Moore [40:44]
9. US Science Funding Cuts & Space Race with China (44:53–46:41)
-
Budget Threat to Astronomy:
- Trump administration proposes >50% cuts to National Science Foundation.
- Scientists warn this could delay top-priority telescope projects and cede research leadership to China.
- Capitol Hill shows signs of pushback, but allocations unresolved.
-
Quote:
"China is making big investments in science. Now there is concern among many scientists that Trump's administration's plans to reduce spending...will have an effect not just on the projects themselves, but also on the scientific ecosystem..."
— Bruce Einhorn, Bloomberg [45:31]
Notable Quotes & Memorable Moments
-
TSMC & Export Controls:
"This adds at another speed bump for TSMC and its suppliers in trying to bring equipment, chemicals and other things that they need for this facility in Nanjing."
— Mike Shepherd [02:52] -
On Market Jitters & Nvidia:
"There's a lot of focus on the terminal this morning about weighting of the S&P 500 and how much of a contribution Nvidia alone made..."
— Ed Ludlow [06:53] -
On Tech Fundamentals:
"Our view is that technicals are not stretched...I do believe fundamentals for Nvidia and technology as a whole remain very solid."
— Anthony Saglimbene [09:22] -
Crypto.com on Treasury Partnerships:
"...Every single blockchain from the top, say 20, will have a leading treasury company that will be focusing on driving demand for it and acquiring as much as physically possible."
— Chris Marszalek [17:54] -
Tesla & Robots:
"He says Tesla will derive 80% of its value from the Optimus robot that's still in development."
— Craig Trudell (summarizing Musk) [29:51] -
AI App Landscape:
"There's apps on this list that have millions of users but maybe do something as specific as removing a background from a photo or generating a PowerPoint presentation."
— Olivia Moore [40:44]
Timestamps for Major Segments
- TSMC Waiver / US-China Semiconductor Tensions: 01:23–05:48
- Tech Market Sell-Off & Nvidia: 05:48–11:40
- Fintech IPO News (Klarna, Revolut, Gemini): 11:40–14:56
- Crypto.com x Trump Media, Prediction Markets: 17:26–23:46
- Tesla News & Analysis: 24:11–35:28
- China Supply Chain, US Science Budget Cuts: 35:28–36:31; 44:53–46:41
- Generative AI Consumer Apps (a16z): 36:48–44:23
Summary
This action-packed episode of Bloomberg Tech provides sharp analysis of the fresh blow to TSMC’s China ambitions, ripple effects across the semiconductor supply chain, Wall Street’s jitters over technology stock valuations, and the venture/IPO landscape in fintech. Special focus is given to Nvidia’s dominant role—and associated concentration risks—in the S&P 500, as well as the implications of U.S.-China tech decoupling on industry giants.
In interviews, Crypto.com's CEO elaborates on the company’s headline-making deals and expansion into prediction markets, while Tesla’s troubles in India and China offer further evidence of global industry turbulence. The show finishes with a rare insider perspective on generative AI mainstreaming and an urgent discussion on U.S. science funding cuts that could shape the future of technological competition with China.
Bloomberg Tech offers not just the news, but context and debate, making this a must-listen for anyone tracking the pulse of global technology and business.