US Expands Tech Crackdown into Chinese Legacy Semiconductor

The US has launched an investigation into legacy Chinese semiconductors, highlighting concerns over non-market policies and practices that harm competition and create risky supply chain dependencies.

This action intensifies pressure on China’s semiconductor industry and could potentially affect products ranging from household appliances to defense systems.

This year, the US has increased its measures against China’s tech sector, raising import tariffs on electric vehicles and cutting-edge chips used in artificial intelligence. Meanwhile, legacy chips, made with less advanced techniques, remain widely produced.

However, the US aims to evaluate its reliance on Chinese legacy chips through a Section 301 investigation. This probe will examine China’s policies and practices related to the production of silicon carbide substrates and other wafers used in semiconductor fabrication.

The Biden administration confirmed that the probe would be handed over to Donald Trump’s administration once he takes office.