Biden Launches Last-Minute Salvo Against Chinese Chips
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
U.S. President Joe Biden attends an event at the White House to support legislation that would encourage domestic manufacturing and strengthen supply chains for computer chips on March 9 in Washington. Photo: VCG
The Biden administration has launched an investigation into China’s legacy semiconductor industry, heightening trade tensions with Beijing just weeks before President-elect Donald Trump takes office.
The Office of the U.S. Trade Representative (USTR) announced on Monday a probe into “China’s acts, policies, and practices related to targeting of the semiconductor industry for dominance,” which it said included anticompetitive measures that appear to be hurting American industry and workers, as well as critical U.S. supply chains.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- The Biden administration is investigating China's legacy semiconductor industry for anticompetitive practices, which may lead to tariffs or restrictions, intensifying U.S.-China trade tensions.
- The investigation focuses on foundational chips, which make up a significant portion of global supply chains.
- Chinese chips only account for a small percentage of chips used in U.S. products, but they are sourced primarily because they are 10% cheaper than alternatives.
AI generated, for reference only
Who’s Who
- Semiconductor Manufacturing International Corporation (SMIC)
- Semiconductor Manufacturing International Corp. (SMIC) is China's largest chipmaker, which has focused on expanding its capacity for legacy chips after being added to the U.S. Commerce Department's trade blacklist in late 2020. Since 2021, SMIC has opened new facilities in Shenzhen, Shanghai, and Tianjin, boosting output significantly. Its 2024 half-year earnings indicate a 47% increase in wafer shipments compared to the same period in the previous year.
- Hua Hong Semiconductor Ltd.
- Hua Hong Semiconductor Ltd. (688347.SH) is one of the leading Chinese foundries dominating the U.S. market for Chinese chips, alongside Semiconductor Manufacturing International Corp. (SMIC). Together, they account for 78% of chips produced for U.S. companies at China-based foundries.
AI generated, for reference only
What Happened When
- Starting January 6, 2024：
- The USTR will accept public comments on the investigation.
- Until February 5, 2024：
- The USTR will continue to accept public comments on the investigation.
- March 2024：
- The USTR plans to hold public hearings on the investigation.
- May 2024：
- The Biden administration announced additional duties on $18 billion worth of Chinese imports, including semiconductors.
- December 23, 2024：
- The Office of the U.S. Trade Representative (USTR) announced an investigation into China's semiconductor industry.
AI generated, for reference only
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新