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China seeks to challenge the United States in artificial intelligence. China’s tech giants have launched their own AI models.
Niphon | Stock | Getty Images
The Biden administration said Monday it has launched a new probe into legacy Chinese semiconductors that can go into everything from cars to household goods and defense systems.
China “routinely engages in non-market policies and practices, as well as industrial targeting” of the chip industry, which allows Chinese companies to “significantly harm competition and create dangerous supply chain dependencies.” supply in fundamental semiconductors,” the White House said in a statement. .
The so-called Section 301 investigation will examine “China’s acts, policies and practices on the production of silicon carbide substrates or other wafers used as inputs in semiconductor manufacturing,” the White House added.
In general, the Washington probe seeks to assess the dependence of the United States on Chinese chips in areas that cover everything from telecommunications to the power grid.
The new investigation marks an escalation of US pressure on China’s semiconductor industry. To date, many of the actions taken by Washington have sought to target the most advanced chips, especially those used in the growing artificial intelligence sector.
The so-called legacy chips are produced with a less advanced manufacturing technique. Chinese chipmakers are still generations behind industry leaders like TSMC, but they are capable of producing legacy chips at scale.
The latest investigation into Chinese legacy chips is being conducted under the Trade Act of 1974. A potential remedy that can be imposed under this law is to place tariffs on the products in question.
The Biden administration has continued to target China’s technology sector this year with increased import tariffs on products from electric vehicles to semiconductors. The latest action comes just weeks before the sitting US president hands over the reins to Donald Trump.
Reuters, citing Biden administration officials, said on Monday that the investigation into the legacy chips will be handed over to the Trump administration to complete.
