Core Viewpoint - The U.S. has unexpectedly decided not to impose additional tariffs on chip exports to China for the next 18 months, marking a significant shift from its previous stance of restricting Chinese semiconductor exports [1][4]. Group 1: U.S. Policy Changes - The Biden administration initiated a 301 investigation into Chinese chip exports in December 2024, aiming to limit China's semiconductor sales to the U.S. [1] - Following the investigation, President Trump announced on December 23, 2025, that while he deemed China's semiconductor development "unreasonable," he would not take immediate action, postponing decisions for 18 months [1]. Group 2: Economic Considerations - The U.S. may have calculated that imposing tariffs could harm its own economy, as many American manufacturers rely on Chinese chips, which would increase production costs and ultimately burden U.S. consumers [4][13]. - The global chip supply chain is highly interconnected, making it risky for the U.S. to impose tariffs that could disrupt its own industries [4][13]. Group 3: China's Semiconductor Strength - China's low-end mature chips have become essential in the global supply chain, used in various products like air conditioners, computers, and automobiles [7][11]. - In 2024, China's integrated circuit exports reached a record high of $159.55 billion, with a 21.4% year-on-year increase in semiconductor exports from January to October 2025 [9]. Group 4: Global Supply Chain Impact - The halt of wafer supply from ASML to a Chinese factory has caused significant disruptions in the global semiconductor supply chain, particularly affecting the automotive industry in Europe [11]. - The situation has highlighted China's critical role in the low-end chip market, indicating that a supply chain disruption could lead to factory shutdowns globally [13]. Group 5: Future Strategies - The U.S. is not abandoning its efforts to restrict Chinese semiconductor imports, as it has initiated a national security risk assessment under the Trade Expansion Act, which includes Chinese chips [15]. - China is adopting a dual strategy to strengthen its low-end chip market while simultaneously advancing in high-end chip technology through integrated innovation across industry, academia, and research [17][19].