China announced on Thursday<\/strong> that it will investigate U.S. government subsidies<\/strong> to the semiconductor sector<\/strong>, claiming they harm Chinese chipmakers<\/strong> that produce mature node chips<\/strong>\u2014a key segment of the semiconductor industry used in home appliances, communications systems, and industrial applications<\/strong>.<\/p>\n\n\n\n The Chinese Ministry of Commerce<\/strong> accused the Biden administration\u2019s CHIPS and Science Act<\/strong> of providing unfair competitive advantages<\/strong> to U.S. semiconductor firms<\/strong>, allowing them to export low-cost mature node chips<\/strong> to China and undermine domestic producers<\/strong>.<\/p>\n\n\n\n China\u2019s commerce ministry stated:<\/strong> Soon after the announcement, the China Semiconductor Industry Association<\/strong> backed the government\u2019s investigation, calling U.S. semiconductor policies a \u201cserious violation of market economy principles.\u201d<\/strong><\/p>\n\n\n\n The CHIPS and Science Act<\/strong>, signed into law in 2022<\/strong>, includes $52.7 billion in subsidies<\/strong> for U.S. semiconductor production, research, and workforce development<\/strong>. Beijing argues that these subsidies create distortions in the global chip market<\/strong> and threaten the competitiveness of Chinese chipmakers<\/strong>.<\/p>\n\n\n\n The probe is seen as a direct response to recent U.S. policies<\/strong>:<\/p>\n\n\n\n U.S. Trade Representative Katherine Tai stated in December:<\/strong> It remains unclear what retaliatory measures<\/strong> China may take following the investigation, but U.S. chip firms operating in China<\/strong> could face new restrictions. Companies like Intel (INTC.O)<\/strong>, which sells mature node chips<\/strong> to Chinese manufacturers, may see their business operations disrupted<\/strong>.<\/p>\n\n\n\n Intel has not yet responded<\/strong> to requests for comment regarding the investigation.<\/p>\n\n\n\n While China\u2019s semiconductor industry lags behind the U.S.<\/strong> in cutting-edge AI chip production, Beijing has already taken retaliatory steps<\/strong> in the past:<\/p>\n\n\n\n China\u2019s probe into U.S. semiconductor subsidies<\/strong> signals an escalation in the ongoing chip war<\/strong> between the two nations. As tensions rise, analysts will closely monitor:<\/p>\n\n\n\n China Retaliates Against U.S. Semiconductor Policies China announced on Thursday that it will investigate U.S. government subsidies to the semiconductor sector, claiming they harm Chinese chipmakers that produce mature node chips\u2014a key segment of the semiconductor industry used in home appliances, communications systems, and industrial applications. The Chinese Ministry of Commerce accused the Biden administration\u2019s […]<\/p>\n","protected":false},"author":10772,"featured_media":4023,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[923,926,933,927,924,930,929,925,931,928],"class_list":{"0":"post-2168","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tech","8":"tag-biden-administration-chip-policies","9":"tag-china-chip-probe","10":"tag-china-rare-earth-restrictions","11":"tag-china-u-s-chip-war","12":"tag-chips-act-retaliation","13":"tag-intel-china-sales","14":"tag-nvidia-china-investigation","15":"tag-semiconductor-trade-tensions","16":"tag-u-s-chip-export-controls","17":"tag-u-s-semiconductor-subsidies"},"_links":{"self":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/2168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/users\/10772"}],"replies":[{"embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2168"}],"version-history":[{"count":2,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/2168\/revisions"}],"predecessor-version":[{"id":4024,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/2168\/revisions\/4024"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/media\/4023"}],"wp:attachment":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\u201cThe Biden administration has given a large amount of subsidies<\/strong> to the chip industry, and U.S. enterprises<\/strong> have thus gained an unfair competitive advantage<\/strong> by exporting low-priced mature node chips<\/strong> to China.\u201d<\/p>\n<\/blockquote>\n\n\n\nChina\u2019s Semiconductor Industry Responds<\/h2>\n\n\n\n
Retaliation Against U.S. Trade Actions<\/h2>\n\n\n\n
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\u201cChina\u2019s state-backed semiconductor expansion<\/strong> has artificially lowered prices and hurt competition.\u201d<\/p>\n<\/blockquote>\n\n\n\nPotential Impact on U.S. Chipmakers<\/h2>\n\n\n\n
Escalating U.S.-China Chip War<\/h2>\n\n\n\n
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What\u2019s Next?<\/h2>\n\n\n\n
With both sides imposing trade restrictions<\/strong>, the global semiconductor supply chain<\/strong> faces further disruption, raising concerns for tech firms and manufacturers worldwide<\/strong>.<\/p>\n\n\n\n\n