“The US launched an investigation into China’s anti-competitive practices in the semiconductor industry. The US launched an investigation into China’s anti-competitive practices in the semiconductor industry. The investigation is focused on “core” semiconductors and could lead to new trade restrictions.”, — write on: unn.ua
Details
The US Trade Representative’s office said it was investigating “China’s actions, policies and practices related to its pursuit of dominance in the semiconductor industry.”
The investigation will be conducted under Section 301 of the US Trade Act and will initially target what the USTR has called “core” semiconductors, including those used in the automotive, healthcare, infrastructure, aerospace and defense industries.
This is another escalation of a potential trade war over semiconductors, raising fears of major disruptions in international supply chains. Potential outcomes of the investigation include import restrictions or new tariffs on Chinese imports of chips used in cars, home appliances and consumer devices — a decision that will be made by the Trump administration.
Washington has reportedly accused China of using “extensive anti-competitive and non-market means, including setting and achieving market share targets, to achieve indigenization and self-sufficiency.” China’s alleged tactics were designed to dominate the semiconductor industry in China and global markets, the USTR said.
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China’s Foreign Ministry did not respond to a request for comment.
After several years of focusing its semiconductor policy on the cutting-edge processors needed to build advanced AI, Washington is focusing more on a mature segment of the market, with chips made using what the industry calls “legacy” manufacturing systems.
Advanced chipmakers such as ASML are already barred from selling their most sophisticated tools to Chinese chipmakers, holding back China’s progress in artificial intelligence and limiting its efforts to rival Silicon Valley-based Nvidia. However, that hasn’t stopped Chinese chip makers from making huge investments to ramp up production of legacy semiconductors. Some analysts believe China is on track to double its chip manufacturing capacity by the end of the decade thanks to subsidies from Beijing. U.S. and European semiconductor executives are warning that local chipmakers could suffer the same problems that have caused an influx of cheap Chinese imported solar panels from Western manufacturers in recent years. Relying on Chinese suppliers could also create problems for US national security, officials fear.
Often overlooked amid the hype surrounding artificial intelligence, the importance of legacy semiconductors became evident during the Covid-19 pandemic, when factory shutdowns caused massive shortages of everyday electronic goods.
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According to a report by the US Department of Commerce, China’s recent increase in mature semiconductor production “has already begun to exert price pressures that could weaken the competitive position of US chip suppliers”. More than two-thirds of US companies’ products use chips made in Chinese foundries, the report said. For decades, China has seen its dependence on the US and other countries as a fundamental national security vulnerability. But the country is struggling to shake its dependence on foreign companies for the key design and manufacturing technologies needed to create increasingly complex chips.
Washington has already introduced new export controls aimed at China’s ability to produce cutting-edge chips, including tighter restrictions on supplies of semiconductor manufacturing tools and a ban on exports of advanced memory chips needed for AI hardware. Beijing quickly hit back, banning US supplies of key minerals and metals used in chip manufacturing. He also launched his own investigation into Nvidia for suspected violations of the country’s antitrust laws.
We will remind
Chinese President Xi Jinping emphasized the importance of the partnership between China and the United States. He stated that cooperation can contribute to the development of both countries and create new opportunities for global development.