China to investigate US exports of legacy chips

BEIJING -- China's Commerce Ministry said Thursday it would launch a probe into US exports of foundational semiconductors, also known as legacy or mature node semiconductors.

In response to a question about the impact of low-priced imported legacy chips from the United States on China's domestic chip industry, a ministry spokesperson said there have been concerns within the sector regarding significant subsidies provided by the Biden administration to the US semiconductor industry.

Citing complaints from the domestic chip industry, the spokesperson said US companies have gained an unfair competitive advantage from the subsidies and have been exporting low-priced chips to China, undermining the legitimate interests of China's domestic chip industry.

It is quite normal for China's domestic industry to express concerns and they have the right to request trade remedy investigations, the spokesperson added.

The spokesperson stressed that relevant authorities will review applications and requests from the domestic industry in accordance with Chinese laws and regulations, as well as World Trade Organization (WTO) rules, and will initiate investigations based on legal procedures.

Following the ministry's announcement, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the China Semiconductor Industry Association (CSIA) issued statements, voicing support for the sector in China, including both domestic and foreign semiconductor enterprises operating in the country, in defending their legitimate rights and interests in accordance with related laws and rules.

Both industrial bodies highlighted that the sustainable development of the semiconductor industry relies on a market environment of fair competition and expressed hope that the probe would contribute to fostering a level playing field.

The CSIA also encouraged enterprises to leverage continuous technological innovation, strengthen industrial chain collaboration, and actively engage in international cooperation to lay a solid foundation for the prosperous development of the global semiconductor industry.