China starts probes targeting US Semiconductor sector

Core Points - China has initiated two investigations into the US semiconductor sector, coinciding with upcoming trade talks between the two nations [1][3] - The Ministry of Commerce has launched an anti-dumping probe on certain American-made analog IC chips and an anti-discrimination investigation regarding US actions against the Chinese chip sector [2][8] - These investigations follow the US adding 23 more China-based companies to its entity list, which restricts businesses that threaten US national security [3][8] Investigation Details - The anti-dumping investigation targets analog IC chips produced by companies like Texas Instruments Inc. and Analog Devices Inc. [2] - The anti-discrimination investigation is a response to perceived US protectionist practices against China in the integrated circuits field [8] Context of Trade Talks - The trade discussions are set against a backdrop of ongoing tensions, with the US having previously imposed tariffs and restrictions on China [4][5] - The semiconductor industry has become a focal point of contention, particularly with the US limiting China's access to advanced AI technologies [5][6] Implications for Companies - Analog chips are crucial for various applications, including smartphones, electric vehicles, and medical imaging, indicating their importance in the tech supply chain [7] - The US has implemented numerous restrictions on China’s semiconductor industry, which Chinese officials claim are discriminatory and aimed at suppressing China's technological advancement [8] Future Considerations - The anti-dumping probe is expected to last about a year, with a possibility of extension, while the anti-bias investigation typically takes around three months [10]