WASHINGTON (Reuters) -The Biden administration announced on Monday a last-minute trade investigation into older Chinese-made "legacy" semiconductors that could heap more U.S. tariffs on chips from China that power everyday goods from autos to washing machines to telecoms gear.
U.S. Commerce Secretary Gina Raimondo said on Monday her department's research showed that two-thirds of U.S. products using chips had Chinese legacy chips in them, and half of U.S. companies did not know the origin of their chips including some in the defense industry, findings that were "fairly alarming."
Tai told reporters the trade agency has found evidence that China is targeting the semiconductor industry for global domination, adding: "This is enabling its companies to rapidly expand capacity and to offer artificially lower-priced chips that threaten to significantly harm and potentially eliminate their market-oriented competition."
A Biden administration official said that in addition to examining the impact of the imported chips themselves, the probe would look at their incorporation into downstream components and end-use goods for critical industries including defense, automotive products and medical devices.
It also will target China's production of silicon carbide substrates and wafers for semiconductor fabrication.