• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

US probes China’s growing influence in legacy chips

by December 17, 2024
written by December 17, 2024

The US is preparing to ramp up its trade restrictions on China’s semiconductor industry, this time focusing on legacy chips.

With weeks remaining in its term, the Biden administration is poised to launch an investigation into Chinese-made legacy semiconductors, potentially leading to tariffs or import bans, as per a report from The New York Times.

The move, expected to be announced soon, signals Washington’s increasing scrutiny of less advanced segments of the chip market.

The investigation could take at least six months to conclude, pushing final decisions on potential tariffs or bans to the incoming Trump administration, which assumes office in January.

This represents a strategic shift, as US policies have largely concentrated on curbing China’s access to advanced semiconductors and high-end chipmaking equipment.

Now, older but widely used chips are under the spotlight.

China’s dominance in the legacy chip market raises concerns

Legacy chips, which power everyday consumer electronics like washing machines, refrigerators, televisions, and vehicles, have become a focal point of global trade tensions.

These older, less sophisticated semiconductors are essential components across multiple industries, including electric vehicles (EVs) and renewable energy.

US officials fear growing reliance on Chinese production could pose economic and national security risks.

China has heavily invested in the legacy chip sector to meet its domestic demand and compete on a global scale.

Although Chinese chips lag behind non-Chinese counterparts technologically, they are already competing on price. Analysts report that Chinese manufacturers are well-positioned to dominate the global legacy chip market in the coming years.

Commerce Secretary Gina Raimondo has previously flagged the growing influence of Chinese producers, stating that 60% of new legacy chips entering the market could come from China.

This increased market share threatens to undercut prices further in an already struggling segment, potentially forcing non-Chinese manufacturers out of business.

US struggles with balancing tariffs and consumer impact

The Biden administration’s earlier announcement to raise tariffs on Chinese legacy semiconductors starting next year reflects broader concerns over price competition.

Enforcing tariffs on legacy chips presents significant challenges.

Legacy chips are embedded in countless finished goods, and taxing them could increase costs across the board for consumers.

Products like televisions, cars, and household appliances would all face price hikes.

Targeting only the semiconductors themselves requires scrutinising individual components within finished products, an intricate process when scaled across imports.

This complexity raises questions about the effectiveness and feasibility of imposing broad tariffs.

National security and economic fallout

Beyond economic implications, US officials cite national security risks as a driving factor behind the investigation.

The Biden administration has been consistent in curbing China’s access to advanced chip technology since imposing export controls in 2022.

While advanced chips power artificial intelligence and military systems, legacy chips remain critical to both consumer goods and infrastructure.

A flood of low-cost Chinese legacy chips into global markets could exacerbate the challenges facing non-Chinese producers.

If competitors are priced out, US reliance on Chinese manufacturers will only deepen.

This scenario creates a dual threat—undermining economic resilience while increasing vulnerability to geopolitical shifts.

Trump’s next move

Any decisions stemming from the investigation will ultimately fall under the Trump administration’s leadership.

Historically, Trump has adopted a hawkish stance on trade with China, including the use of tariffs to protect US industries. As a result, further escalation in chip-related trade restrictions appears likely.

The investigation marks a pivotal moment for Washington’s trade strategy, as policymakers grapple with the complexities of global supply chains.

Balancing economic protection, national security, and consumer impact remains a challenging task.

The outcome could reshape the legacy semiconductor market, with ripple effects across industries reliant on these essential components.

The post US probes China’s growing influence in legacy chips appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Walmart de Mexico hit with 10-year restrictions over supplier practices
next post
RIL set to end 2024 in red for the first time in a decade: what investors need to know

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Trump tasks blue state Republicans with ‘homework’ as GOP plots massive conservative policy overhaul

    January 13, 2025
  • Judge denies embattled government-funded agency’s restraining order request against DOGE

    March 20, 2025
  • Jimmy Carter’s funeral brings all 5 living presidents together in Washington, DC

    January 9, 2025
  • Harris flips on another policy position: Banning plastic straws

    September 7, 2024
  • Former Clinton aide Huma Abedin, Alex Soros marry in swank Hamptons wedding packed with Dem heavyweights

    June 15, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,248)
  • Investing (634)
  • Stock (935)

Latest Posts

  • Amazon hikes wages for contract delivery drivers as union pressures grow

    September 13, 2024
  • Ripple and Tron: Tron is once again close to the weekly high

    July 25, 2024
  • Democrats plot coup to ‘save democracy,’ but what happens if they fail?

    July 20, 2024

Recent Posts

  • Federal judge dumps Peter Strzok lawsuit over FBI firing for anti-Trump texts

    September 24, 2025
  • Trump’s foreign aid clawback rattles Senate ahead of funding fight

    September 4, 2025
  • UK’s Starmer juggles trouble at home as he walks geopolitical tightrope with Trump

    February 27, 2025

Editor’s Pick

  • Lawmakers ask Mark Zuckerberg to show how Facebook, Instagram are addressing illicit drug ads

    August 16, 2024
  • Critics claim Biden remains president ‘in name only’ despite DNC vow to finish next 5 months of term strong

    August 20, 2024
  • Black Caucus chair accuses Trump of ‘purge’ of ‘minority’ federal workers

    January 31, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock