The United States launched a probe into legacy Chinese semiconductors, affecting products from cars to defense systems.
The Section 301 investigation will examine China’s policies and practices regarding the production of silicon carbide substrates and other wafers used in semiconductor fabrication, according to the White House.
Washington’s probe aims to assess U.S. dependence on legacy Chinese chips, covering sectors like telecommunications and the electrical grid.
This investigation represents an escalation in U.S. pressure on China’s semiconductor industry, building on previous actions focused on advanced chips, particularly those used in artificial intelligence.
Legacy chips are made using less advanced manufacturing techniques. While Chinese chipmakers lag behind industry leaders like TSMC, they can still produce legacy chips at scale.
The latest investigation into these chips is being conducted under the Trade Act of 1974, which allows for potential remedies, including tariffs on the products in question.
The US government has continued to target China’s tech sector this year, raising import tariffs on products ranging from electric vehicles to semiconductors. This latest move comes just weeks before President Biden is set to hand over the reins to Donald Trump.
