The US has intensified its campaign to counter China’s ambitions in technology leadership, with the Biden administration initiating a high-stakes investigation into China’s expanding dominance in legacy semiconductor manufacturing.
The US Trade Representative (USTR) is probing whether China’s practices — backed by extensive state support — constitute unfair competition, endangering American industries and national security.
“Evidence indicates that China seeks to dominate domestic and global markets in the semiconductor industry and undertakes extensive anticompetitive and non-market means, including setting and pursuing market share targets, to achieve indigenization and self-sufficiency,” the USTR said in a statement.
Legacy chips, essential for everything from cars and defense systems to medical devices, have become the latest battleground in the US-China tech war, with both nations vying to control this critical segment of the semiconductor market
“Given the prevalence of semiconductors throughout our economy – from everyday consumer electronics and cars to military systems and AI data centers – we urge the Office of the US Trade Representative to proceed deliberately and to work closely with industry throughout the process,” John Neuffer, CEO of the Semiconductor Industry Association (SIA) said in a statement supporting the USTR move.
Neuffer further suggested that leaders in Washington should also pursue a proactive and affirmative agenda that “builds our domestic fabrication and packaging capacity, strengthens our research and design ecosystem, and creates new demand for Made-in-America chips at home and overseas.”
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