07:47 AM EDT, 03/15/2024 (MT Newswires) -- China's Ministry of Industry and Information Technology has asked electric vehicle makers to avoid using imported semiconductors and buy more local chips, Bloomberg reported Friday, citing unnamed people familiar with the matter.

The move is aimed at promoting China's semiconductor industry and reducing reliance on Western chipmakers, casting uncertainty over the prospects of Nvidia ( NVDA ) , NXP Semiconductors ( NXPI ) and Texas Instruments ( TXN ) , according to the report.

Foreign companies will now have to produce their silicon through a local foundry like Semiconductor Manufacturing International or Hua Hong Semiconductor, the report said, citing one of the people.

Nvidia ( NVDA ), NXP Semiconductors ( NXPI ), Texas Instruments ( TXN ), and China's Ministry of Industry and Information Technology did not immediately respond to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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