The Biden administration has announced a new trade investigation targeting “legacy” semiconductors made in China.
These old chips are widely used in items such as cars, washing machines and telecommunications equipment.
The move, just weeks before Donald Trump takes office, could lead to higher tariffs on these chips, potentially as high as 60%.
The Biden administration has already imposed a 50% tariff on Chinese semiconductors, effective January 1.
Stricter export rules for advanced chips and chip-making tools have also been introduced to limit China’s technological advancements.
US officials have alleged that China’s state-driven chip production undermines fair competition, allowing its products to undercut global competitors.
The investigation will also look at key products that use these chips, including critical items such as medical devices and automotive components.
US Commerce Secretary Gina Raimondo has raised concerns about the widespread use of Chinese chips in US products, warning of risks to national security and industry.
As China plans to dominate chip production, the US is stepping up efforts to strengthen its own semiconductor industry with a $52.7 billion investment in research and manufacturing.
