The Biden administration is preparing a trade investigation into China's production of older-model semiconductors due to national security threats as U.S. dependence grows.
The U.S. aims to protect its supply chains from China's government-subsidized production of foundational chips that are vital for numerous sectors, including national defense.
Commerce Secretary Gina Raimondo noted that China's dumping of legacy chips at lower prices into the market is unfair to American manufacturers and may warrant tariffs.
Anticipating a completed investigation by the incoming Trump administration, it could lead to tariffs or import bans on certain Chinese semiconductor products.
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