The United States launches a new investigation into ancient Chinese chips

The Biden administration said Monday it has launched a new investigation into ancient Chinese semiconductors that may be in everything from cars to household goods and defense systems.

The White House said in a statement that China “routinely engages in non-market policies and practices, as well as industrial targeting” of the chip industry, allowing Chinese companies to “substantially harm competition and create serious supply chain dependencies in basic semiconductors.” .

The White House added that the so-called Section 301 investigation will look into “Chinese actions, policies, and practices regarding the production of silicon carbide substrates or other chips used as inputs in semiconductor manufacturing.”

More broadly, Washington’s investigation seeks to assess the United States’ reliance on older Chinese chips in areas including everything from telecommunications to the electrical grid.

The new investigation represents an escalation of US pressure on China’s semiconductor industry. So far, many of Washington’s actions have sought to target the latest chips, particularly those used in the booming artificial intelligence sector.

So-called legacy chips are produced using less advanced manufacturing techniques. Chinese chip manufacturers are still generations behind industry leaders like TSMC, but they are capable of mass-producing older chips.

This is a breaking news story. Please check back for more information.