The US has launched a new investigation into old Chinese chips

On Monday, the Biden administration said it was launching a new investigation into old Chinese semiconductors, which could include everything from cars to household appliances and defense systems.

The White House said in a statement that China “routinely engages in non-market policies and practices, as well as industrial targeting of the chip industry,” which allows Chinese firms to “significantly harm competition and create dangerous supply chain dependencies in key semiconductors.” . .

The White House added that the Section 301 investigation will examine China’s “actions, policies, and practices related to the production of silicon carbide substrates or other wafers used as inputs to the production of semiconductors.”

More generally, the Washington study seeks to assess the U.S.’s reliance on legacy Chinese chips in areas ranging from telecommunications to the power grid.

New research shows increasing US pressure on China’s semiconductor industry. Many measures taken by Washington to date have sought to target the most advanced chips, particularly those used in the fast-growing artificial intelligence sector.

The so-called old chips are produced with less advanced manufacturing techniques. Chinese chipmakers are still generations behind industry leaders like TSMC, but they can produce older chips at scale.

The latest investigation into China’s old chips is under the Trade Act of 1974. One of the potential remedies under this law is the imposition of tariffs on the products in question.

The Biden administration has continued to target China’s technology sector this year, raising import tariffs on products ranging from electric vehicles to semiconductors. The latest move comes just weeks before the current US president hands over the reins to Donald Trump.

Reuters reported on Monday, citing Biden administration officials, that the legacy will be handed over to the Trump administration to complete the investigation into the chips.