Biden administration plans to investigate Chinese semiconductors: report
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15 hours ago
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- U.S. President Joe Biden’s administration is planning to begin an investigation into Chinese semiconductor companies in order to reduce U.S. reliance on the technology, according to a report by Bloomberg.
- The investigation could lead to tariffs or other import restrictions for older-model, or legacy, semiconductors from China used in a wide range of consumer products from smartphones to household appliances, the report said.
- “Biden officials worry that without restrictions, Beijing will flood the US and global markets with inexpensive chips that will undercut other companies and run them out of business,” according to the report.
- The probe could take months to complete, meaning any action resulting from it would fall on the President-elect Donald Trump administration. Trump has already suggested stricter tariffs on Chinese goods.
- Biden already announced it planned to increase tariffs in 2025 on Chinese semiconductors to 50% from the current 25% rate.
- The Biden administration has attempted to bolster U.S. chipmakers through the CHIPS and Science Act, which is delivering billions to companies such as Micron Technology (NASDAQ:MU) and Intel (NASDAQ:INTC).