China is seeking to challenge the United States in artificial intelligence. China’s tech giants have launched their own models of artificial intelligence.
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The Biden administration said on Monday it has launched a new investigation into traditional Chinese semiconductors that could touch everything from cars to home appliances and defense systems.
The White House said in a statement that China “routinely adopts non-market policies and practices, as well as industrial goals” in the chip industry, which allows Chinese companies to “severely harm competition and create dangerous supply chain dependence in the basic semiconductor field.”
The so-called Section 301 investigation will investigate China’s “conduct, policies and practices related to the production of silicon carbide substrates or other wafers used as inputs in semiconductor manufacturing,” the White House added.
Overall, Washington’s investigation aims to assess the extent to which the United States relies on traditional Chinese chips in everything from telecoms to power grids.
The new investigation marks an escalation in U.S. pressure on China’s semiconductor industry. Many of the actions taken by Washington so far have sought to target the most cutting-edge chips, particularly those used in the booming field of artificial intelligence.
So-called legacy wafers are produced using less advanced manufacturing techniques. Chinese chipmakers are still generations behind industry leaders such as TSMC, but they are able to mass-produce traditional chips.
The latest investigation into China’s legacy chips was conducted under the 1974 Trade Act.
The Biden administration has continued to target China’s technology sector this year, raising import tariffs on products ranging from electric vehicles to semiconductors. The latest action comes just weeks before the current US president hands over power to Donald Trump.
Reuters quoted a Biden administration official on Monday as saying that the investigation into the legacy chips would be handed over to the Trump administration for completion.
