US starts investigation into Chinese semiconductor manufacturing


(MENAFN) The US has initiated a trade investigation into China's production of legacy semiconductors, citing concerns that Beijing is using anticompetitive tactics to dominate both domestic and global Semiconductor markets. Trade Representative Katherine Tai expressed worries that China's policies, including setting market-share goals and pursuing self-sufficiency, could harm the US economy, critical industries, and supply chains.

The investigation will focus on China’s manufacturing of legacy semiconductors, which are vital for various sectors such as automotive, medical devices, aerospace, telecommunications, and defense. Additionally, the probe will assess whether China's practices regarding silicon carbide substrates, essential for semiconductor production, are unfairly impacting US commerce.

This probe, which falls under Section 301 of the Trade Act of 1974, follows previous trade tensions, including tariffs imposed on Chinese goods by the Trump administration. The US Department of Commerce has highlighted concerns that China plans to dominate global legacy chip production, potentially stifling investment and creating unfair competition. Washington has also tightened export controls to limit China’s access to critical US semiconductor components, citing national security concerns.

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