Biden Fires Grand Finale Chip War Salvo At China


(MENAFN- Asia Times) The Biden administration announced a trade investigation into Chinese legacy semiconductors, which usually refer to 28 nanometer or higher chips, to protect America's chip-making sector.

The Office of the US Trade Representative will launch a Section 301 investigation to examine the People's Republic of China (PRC)'s targeting of foundational semiconductors or mature node chips for dominance and the impact on the US economy, according to a fact sheet released by the White House on Monday (December 23).

The USTR probe will cover Chinese semiconductors incorporated as components into downstream products for critical industries like defense, automotive, medical devices, aerospace, telecommunications, and power generation and the electrical grid.

It will also initially assess whether the impact of China's acts, policies and practices on the production of silicon carbide substrates (or other wafers used as inputs into semiconductor fabrication) contributes to any unreasonableness or discrimination or burden or restriction on US commerce.

“This investigation underscores the Biden-Harris Administration's commitment to standing up for American workers and businesses, increasing the resilience of critical supply chains, and supporting the unparalleled investment being made in this industry,” said US Trade Representative Katherine Tai.

The New York Times reported on December 16 that the Biden administration was preparing to probe China's legacy chips. The report said it may take at least six months to finish the probe, so it will be for the incoming Trump administration to decide what actions to take.

The Chinese Ministry of Commerce (MoC) on Monday criticized the USTR's coming legacy chip probe.

“The US side has provided huge subsidies to its chip industry through the Chip and Science Act,” a MoC spokesperson said.“While its companies account for nearly half of the global chip market, the US accuses China of having so-called non-market practices and exaggerates the threat of the Chinese chip sector.”

The spokesperson said Washington should respect the fact that China's imports of American chips are much greater than the United States' imports of Chinese chips.

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Asia Times

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