Dec 23, 2024, 3:14 PM
Dec 22, 2024, 6:00 PM

Nearfield Instruments secures major repeat orders for QUADRA Metrology System from top semiconductor maker

Highlights
  • The Biden administration's investigation targets China's legacy chip production policies due to economic security risks.
  • Trade Representative Katherine Tai claims that these policies are detrimental to US industry competitiveness and supply chains.
  • The inquiry aims to ensure fair competition and address concerns about China's plans to dominate the semiconductor market.
Story

In the United States, the Biden administration has initiated a trade investigation focusing on China's legacy semiconductor production. This probe arises from concerns regarding the potential threats posed by Chinese chip-manufacturing policies to U.S. economic security. Trade Representative Katherine Tai emphasized that China's extensive and non-market strategies to dominate the semiconductor industry might undermine American industry competitiveness and threaten critical supply chains. The investigation specifically targets foundational semiconductors, crucial for various sectors, including automotive, medical devices, and military applications. Furthermore, the investigation will examine the implications of Chinese policies on the production of silicon carbide substrates and their potential discrimination or restrictions on U.S. commerce. Secretary of Commerce Gina Raimondo highlighted alarming findings that two-thirds of U.S. products rely on components made with Chinese legacy chips, and many companies are unaware of the origins of their semiconductor components. The probe underscores the Biden administration's intent to confront China's ambitious plans to dominate the semiconductor landscape, which it claims could lead to significant investment discouragement elsewhere. The investigation aligns with previous actions taken under Section 301 of the Trade Act of 1974, where tariffs were imposed on extensive imports from China. It draws parallels with the trade tensions that surfaced around 2018 and 2019, leading to ongoing disputes between the two nations. Washington has continuously tightened export controls to prevent Chinese firms from acquiring specific American technology, citing national security risks. The urgency of addressing these issues is underscored by the fact that the current probe commenced in the final weeks of the Biden administration, suggesting that subsequent actions will fall to the incoming Trump administration. Therefore, the decision to initiate this investigation not only reflects growing tensions and competition between the U.S. and China in the technology sector but also symbolizes a broader concern over national security implications associated with reliance on Chinese semiconductor production. The efforts to scrutinize the semiconductor industry showcase a determined effort by the U.S. government to preserve its position in critical technology sectors and safeguard economic interests against potential foreign threats.

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