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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 | fake images
The Biden administration said Monday it launched new research into legacy Chinese semiconductors that can be used in everything from cars to household items to defense systems.
China “routinely engages in non-trade policies and practices, as well as industrial objectives” of the chip industry, allowing Chinese companies to “significantly harm competition and create dangerous dependencies in the supply chain of critical semiconductors,” the White House said in a statement. .
The so-called Section 301 investigation will examine China’s “acts, policies and practices regarding the production of silicon carbide substrates or other wafers used as inputs for semiconductor manufacturing,” the White House added.
Overall, Washington’s investigation seeks to assess U.S. dependence on legacy Chinese chips in areas spanning 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, particularly those used in the burgeoning artificial intelligence sector.
So-called legacy chips are produced with less advanced manufacturing techniques. Chinese chipmakers are still several generations away from industry leaders like TSMC, but they are capable of producing legacy chips at scale.
The latest investigation into traditional Chinese chips is being carried out under the Trade Act of 1974. One possible remedy that can be imposed under this law is to impose tariffs on the products in question.
The Biden administration has continued to target China’s technology sector this year with higher import tariffs on products from electric vehicles to semiconductors. The latest action comes just weeks before the current US president hands the reins to Donald Trump.
Reuters, citing Biden administration officials, reported on Monday that the investigation into the legacy chips will be handed over to the Trump administration to complete.
