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After years of seemingly boundless expansion, the U.S. tech industry has hit a wall. Companies are in cash preservation mode, leading to thousands of job cuts a month and a surge of layoffs in November.

While the sudden loss of a paycheck can be devastating for anyone, especially during the holiday season, the recent wave of reductions is having an outsized impact on skilled workers who are living in the U.S. on temporary visas and are at risk of being sent home if they can’t secure a new job in short order.

Tech companies are among the employers with the most approvals for H-1B visas, which are granted to people in specialty occupations that often require a college degree and extra training. Silicon Valley has for years leaned on temporary visas issued by the government to employ thousands of foreign workers in technical fields such as engineering, biotech and computer science. That’s a big reason tech companies have been outspoken in their defense of immigrants’ rights.

Workers on temporary visas often have 60 to 90 days to find a new gig so they can avoid being deported.

“It’s this amazing talent pool that the U.S. is fortunate to attract, and they’re always living on the edge,” said Sophie Alcorn, an immigration lawyer based in Mountain View, California, who specializes in securing visas for tech workers. “Many of them up are up against this 60-day grace period deadline. They have a chance to find a new job to sponsor them, and if they can’t do that, they have to leave the U.S. So it’s a stressful time for everybody.”

The already grim situation worsened in November, when Meta, Amazon, Twitter, Lyft, Salesforce, HP and DoorDash announced significant cuts to their workforces. More than 50,000 tech workers were let go from their jobs in November, according to data collected by the website Layoffs.fyi.

Amazon gave staffers who were laid off 60 days to search for a new role inside the company, after which they’d be offered severance, according to a former Amazon Web Services employee who lost his job. The person spoke to CNBC on the condition of anonymity.

In fiscal 2021, Amazon had the most approved petitions for H-1B visas, with 6,182, according to a National Foundation for American Policy review of U.S. immigration data. Google, IBM and Microsoft also ranked near the top of the list.

The former AWS employee has been in the country for two years on student and employment visas. He said he was unexpectedly laid off at the beginning of November, just months after joining the company as an engineer. Despite Amazon informing him that he had 60 days to find another position internally, the person said his manager advised him to apply for jobs elsewhere due the company’s pullback in hiring. Amazon said in November it’s pausing hiring for its corporate workforce.

An Amazon spokesperson didn’t provide a comment beyond what CEO Andy Jassy said last month, when he told those affected by the layoffs that the company would help them find new roles.

Companies generally aren’t specifying what percentage of the people being laid off are on visas. A search for “layoffs H1B” on LinkedIn surfaces a stream of posts from workers who recently lost their jobs and are expressing concern about the 60-day unemployment window. Visa holders have been sharing resources on Discord servers, the anonymous professional network Blind and in WhatsApp groups, the former AWS employee said.

It had already been a frenetic few years for foreign workers in the U.S. well before surging inflation and concerns of a recession sparked the latest round of job cuts.

The Trump administration’s hostile posture toward immigration put the H-1B program at risk. As president in 2020, Donald Trump signed an executive order suspending work visas, including those with H-1B status, claiming they hurt employment prospects for Americans. The move drew a strong rebuke from tech executives, who said the program serves as a pipeline for talented individuals and strengthens American companies. President Joe Biden allowed the Trump-era ban to expire last year.

Whatever relief the Biden presidency provided is of limited value to those who are now jobless. An engineer who was recently laid off by gene-sequencing technology company Illumina said he hoped his employer would sponsor his transfer to an H-1B visa. He’s here on a different visa, known as Optional Practical Training (OPT), which allows graduates in science, technology, engineering and mathematics (STEM) to work in the U.S. for up to three years after graduation.

The former Illumina employee, who spoke on condition that he not be named, not only has to find a new job within 90 days from the layoff date, but his OPT visa expires in August. Any company that hires him must be willing to sponsor his visa transfer and pay the related fees. He’s considering going back to school in order to extend his stay in the U.S., but he’s anxious about taking on student loans.

Illumina said in November it was cutting about 5% of its global workforce. A company spokesperson told CNBC that less than 10% of impacted employees were here on H-1B or related visas.

“We are engaging with each employee individually so that they understand the impact to their employment eligibility and options to remain in the U.S.,” the spokesperson said by email. “We are working to review each and every situation to ensure great care for those impacted, and to ensure compliance with immigration law.”

The ex-employee said he had dreams of working for Illumina, planting roots in the U.S. and buying a house. Now, he said, he’s just trying to find a way to stay in the country without going deep into debt. In just a matter of months, it’s “like a night and day difference,” he said.

WATCH: Tech layoffs double from October to November

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China’s AI wearables market is already booming: From the practical to peculiar

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China's AI wearables market is already booming: From the practical to peculiar

China Lens: Beijing betting big on AI devices

China’s artificial intelligence device market is already booming, and in the advanced technology race against the U.S., the country’s expertise in hardware could give it an edge.

“The advantage comes from the fundamental root that China is a nation of manufacturing,” Dr. Kai-Fu Lee, CEO of 01.AI and chairman of Sinovation Ventures, told CNBC. “Today, the competition is on the software, the models, the agents, the applications. But soon it will move to devices.”

Meta has sold millions of its smart glasses since introducing the specs in 2023, and the Chinese have caught on, with more than 70 Chinese companies creating competing products in the space.

Eyewear from companies such as Inmo and Rokid are sold worldwide. Xiaomi and Alibaba‘s are found only in China and are embedded with the tech giants’ own AI.

Alibaba’s DingTalk, a messaging platform for the workplace, this year released a credit card-sized AI gizmo meant for note-taking on the job.

The DingTalk A1 can record, transcribe, summarize and analyze speech from as far as 8 meters (26 feet) away, about the length of a large boardroom.

The device is similar to the Plaud Note, which is available in the U.S.

The device experimentation in China spans from the practical to the unconventional.

Chinese startup Le Le Gaoshang Education Technology released a “Native Language Star” brand translating gadget aimed at Chinese parents with limited English to teach English to their own children.

Read more CNBC tech news

The contraption, which is looped around the back of a user’s neck like a travel neck pillow and comes down toward the chest, has a sort of muzzle unit that goes over the mouth and mutes the user’s own voice.

The unit is embedded with Tencent and iFlyTek AI and is billed as a way to turn an English-speaking Chinese parent into a “laowai,” or foreigner. It retails for $420.

Having so many hardware touchpoints helps with adoption and with getting people used to the technology. It’s also a boost for companies to gather a war chest of data compared to other countries, analysts say.

“When you still hear people outside of China talking about what the future of the AI device might be, the market is full of AI devices here already,” tech consultant Tom van Dillen of Greenkern said at his office in Beijing. “This creates this feedback loop again to make the AI even better.”

Yet an edge in hardware is far from a guarantee to win the AI race, especially if China’s AI lacks appeal with global customers due to privacy or other issues, or if it falls well behind its counterparts in the U.S. or elsewhere.

“You really have to be that Apple iPhone to reap the most of the reward,” Lee cautioned, referencing late entrepreneur Steve Jobs’ invention that is often seen as one of the most transformative consumer products ever. “I think the China advantage for building the Apple iPhone for the AI age is that the capabilities are there — engineers and entrepreneurs, and so on. But it will still be a race.”

U.S. Commerce Department to allow exports of Nvidia H200 chips to China

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Trump greenlights Nvidia H200 AI chip sales to China if U.S. gets 25% cut, says Xi responded positively

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Trump greenlights Nvidia H200 AI chip sales to China if U.S. gets 25% cut, says Xi responded positively

Pres. Trump: Will allow Nvidia to ship H200 products to approved customers in China, U.S. to get 25%

President Donald Trump on Monday said Nvidia will be allowed to ship its H200 artificial intelligence chips to “approved customers” in China and elsewhere, on the condition that the U.S. gets a 25% cut.

Chinese President Xi Jinping “responded positively” to the proposal, Trump wrote in a Truth Social post.

The policy “will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers,” Trump wrote.

“The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies,” he added in the post.

Both Nvidia and chip rival AMD, short for Advanced Micro Devices, agreed in August to share 15% of the revenue from China chip sales with the U.S. government. But around that same time, China reportedly warned companies against using the H20 AI chip that Nvidia designed especially for the country.

The H200 is a higher-grade chip than the H20, but not the company’s top-of-the-line product.

Nvidia shares climbed earlier Monday on news that the Commerce Department was set to approve the China sales, but later pared those gains. The stock rose about 2% after hours.

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Nvidia (NVDA) and Advanced Micro Devices (AMD) stock prices

“We applaud President Trump’s decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America,” a spokesman from Nvidia told CNBC in a statement.

“Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,” the spokesman said.

Semiconductors, which are key components in nearly every category of electronics, are at the center of the AI race between the U.S. and China.

They have also played a role in the tumultuous trade relationship between the two economic superpowers.

Read more CNBC tech news

When Beijing imposed export controls on rare-earth minerals, which are used in the production of some high-end chips, the Trump administration threatened to massively increase tariffs on U.S. imports from China.

After meeting in South Korea in late October, Trump and Xi struck a tentative trade truce in which China committed to end “retaliation” against U.S. chipmakers, according to the White House.

Trump said after that meeting that he discussed the export of Nvidia chips with Xi.

CNBC’s Kristina Partsinevelos and Kif Leswing contributed to this report.

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Broadcom is firing on all cylinders, and Wall Street can’t get enough of the stock

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Broadcom is firing on all cylinders, and Wall Street can't get enough of the stock

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