U.S. to Survey Semiconductor Supply Chain Amid China Concerns

Potential tariffs on legacy chips considered as Chinese firms prepare to flood market, threatening U.S. national security and industry competition.

The U.S. Department of Commerce announced a new survey to analyze the U.S. semiconductor supply chain, focusing on sourcing of legacy chips, in response to potential national security risks posed by China.
Chinese companies, supported by strong subsidies, are preparing to flood the market with legacy chips, potentially undercutting Western firms and depriving them of vital R&D funding.
The U.S. government is considering imposing tariffs on products using mature processing nodes to counteract China's aggressive expansion in the semiconductor industry.
Companies headquartered in the U.S. account for approximately half of global semiconductor revenue but face intense competition supported by increasing subsidies from foreign governments.
The survey's findings will guide the U.S. in formulating responses that could include the imposition of tariffs or the use of other trade tools.