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US Legislators Want Stronger Trade Actions to Curb China’s Dominance in Legacy Chips

Home Asia US Legislators Want Stronger Trade Actions to Curb China’s Dominance in Legacy Chips
US Legislators Want Stronger Trade Actions to Curb China’s Dominance in Legacy Chips

U.S. House lawmakers want stronger actions to curtail China’s continued domination of older-generation microchip manufacturing. 

In a letter addressed to U.S. government business and trade officials, Reps. Mike Gallagher, R-Wis., and Raja Krishnamoorth, D-Ill., recommended implementing tariffs and other efforts to reduce the overreliance on China for less-advanced semiconductors in use across several industries. 

The legislators called on the secretaries of the U.S. Trade Representative and the Department of Commerce to use their trade authorities or create new mechanisms to protect the supply chain for older-generation chips. 

China is investing tens of billions of dollars in its semiconductor manufacturing industry. According to reports, Chinese companies purchased $30 billion worth of machinery for chip manufacturing in 2023. 

While the United States government has imposed export sanctions on China-made chips, most of the East Asian nation’s output is older-generation semiconductors that are not covered by current restrictions. 

For its part, the U.S. government is building a more robust semiconductor manufacturing industry. The Commerce Department recently announced that it will grant Microchip Technology $162 million in funding under the CHIPS Act to support the company’s expansion in Oregon and Colorado. 

The agency also plans to survey the U.S. semiconductor supply chain to support domestic production of older-generation chips. 

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