Impact of US Tariffs and Trade War on Private Equity Investment in China’s Semiconductor Industry: A Comparative Analysis of NAURA and SMIC under the Entity List

Xiamen University of Technology, Xiamen, Fujian Province, China

^* Corresponding author: menghangyu357@gmail.com

Abstract

This paper accelerates the empirical study of the impact mechanism of US tariffs policy and the Entity List on private equity investment in different segments of China’s semiconductor industrial chain, the study employs the global value chains theory and PEST analysis framework, combined with Pearson correlation analysis. Through comparative analysis of the operating data of Naura Technology Group Co., Ltd. (equipment manufacturer) and Semiconductor Manufacturing International Corporation (wafer foundry), the analysis finds that the Entity List policy forces the acceleration of domestic substitution through technology blockade, which promotes the counter-cyclical growth of private equity financing in the equipment manufacturing segment; while the foundry segment leads to a decline in private equity valuation due to the surge in supply chains costs. The study shows that the “tariffs + technology blockade” policy has a structurally differentiated impact on private equity investment in China’s semiconductor industry, providing important decision-making references and strategic guidance for policymakers, private equity investors, and semiconductor companies.