US Launches Probe into China’s Dominance in Legacy Chip Market: Tech Supply Chains at Risk

The US government is taking action against China’s increasing dominance in the semiconductor industry. The Biden administration has launched an investigation into China’s practices, which are allegedly supported by unfair tactics like cyber intrusions, forced technology transfers, and pricing chips below production costs.

The investigation, spearheaded by the US Trade Representative (USTR), aims to determine if China’s strategies pose a threat to American industries and national security. The USTR believes that China aims to control both domestic and global semiconductor markets through non-market means and anticompetitive practices.

Legacy chips are at the center of this conflict, as they are crucial components in various devices, from cars to defense systems. Both the US and China are vying for control over this critical segment of the semiconductor industry.

John Neuffer, CEO of the Semiconductor Industry Association, emphasized the importance of semiconductors in everyday life, from consumer electronics to military systems. He is urging the USTR to proceed thoughtfully and collaborate closely with the industry during this investigation.

The US government’s scrutiny over China’s semiconductor practices underscores the escalating tensions in the technology industry and the broader economic landscape between the two global superpowers.