Posted 12/22/2023, 12:13:56 PM
U.S. Weighs Tariffs to Counter China's Attempts to Flood Chip Market
- U.S. considering tariffs on legacy chips from China as Chinese companies prepare to flood market, undercutting Western firms
- China providing heavy subsidies to its chipmakers, allowing them to expand production capacity and flood market with cheap legacy chips
- Tactic could deprive Western firms of sales needed to fund R&D for advanced technologies
- U.S. surveying 100+ companies on reliance on legacy chips made in China, to guide strategy and potential trade actions
- Commerce Secretary indicated willingness to use trade tools to stop China from flooding market, but advanced tech likely spared from stringent controls