The US is planning an investigation into Chinese dominance of legacy chips, which could lead to tariffs or import bans. The Biden administration is preparing the probe with just weeks left in its term, but it’s expected to take at least six months to conclude. If implemented, any policy decisions will be made by the incoming Trump administration.
This investigation comes as the US has already imposed export controls on advanced semiconductors to China and is trying to cut off the country’s access to high-end machines needed for making these chips. The US is concerned that Chinese legacy chips could pose a national security threat, with 60% of new legacy chips entering the market expected to come from China.
China has invested in the legacy chip sector to supply its own industry, including electric vehicles and renewable energy. However, this could lead to depressing prices in the market and putting pressure on US manufacturers that rely on Chinese competitors. Imposing tariffs on legacy chips could be challenging, as it would raise prices for consumers across the board.
The investigation will focus on less cutting-edge parts of the industry, while the Biden administration has previously focused on advanced chips and chipmaking to China. The Trump administration will take over in January and may implement policy decisions related to tariffs or import bans.
Source: https://www.yahoo.com/news/u-reportedly-plans-investigate-china-064637718.html