The US launches a new investigation into old Chinese chips


China wants to challenge the USA in the field of artificial intelligence. China’s tech giants have launched their own AI models.

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

China “regularly resorts to non-market policies and practices as well as industrial attacks” on the chip industry, allowing Chinese firms to “significantly harm competition and create dangerous supply chain dependencies in essential semiconductors,” the White House said in an explanation.

The so-called Section 301 investigation will examine China’s “actions, policies and practices in producing silicon carbide substrates or other wafers used as inputs for semiconductor manufacturing,” the White House added.

Overall, Washington’s investigation aims to assess reliance on old Chinese chips in areas ranging from telecommunications to the power grid.

The new investigation marks an escalation in US pressure on China’s semiconductor industry. So far, many of the actions taken by Washington have been aimed at targeting the most advanced chips, particularly those used in the booming artificial intelligence sector.

So-called legacy chips are manufactured using less advanced manufacturing techniques. Chinese chipmakers still lag generations behind industry leaders like TSMC, but are capable of producing older chips at scale.

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