The US has launched a new investigation into China’s semiconductor industry, focusing on “legacy” chips used in various products such as cars, household goods, and defense systems.
China is accused of engaging in non-market policies and practices that harm competition and create supply chain dependencies. The investigation, launched under the Trade Act of 1974, aims to assess US dependency on Chinese semiconductors in critical areas like telecommunications and the electrical grid.
The probe targets products made with silicon carbide substrates or other wafers used as inputs into semiconductor fabrication. It is an escalation of US pressure on China’s semiconductor industry, which has already seen increased import tariffs on products from electric vehicles to semiconductors.
The investigation marks a shift in focus towards “legacy” chips, produced using less advanced manufacturing techniques, compared to cutting-edge chips used in artificial intelligence applications. The probe may lead to tariffs being imposed on the affected products.
Source: https://www.cnbc.com/2024/12/23/us-launches-new-probe-into-legacy-chinese-chips.html