Core Viewpoint - The Chinese Ministry of Commerce has initiated an anti-dumping investigation into imported simulation chips from the United States, citing significant price drops and increased import volumes that harm domestic industries [3][5]. Group 1: Investigation Details - The investigation targets general interface and gate driver chips, with evidence showing a 37% increase in import volume and a 52% decrease in import prices from 2022 to 2024 [3][6]. - The dumping margins for the investigated products are exceptionally high, with general interface chips at 302.41% and gate driver chips at 458.51% [6][7]. - The market share of U.S. simulation chips in China has risen from 35.40% in 2022 to 44.98% in 2024, indicating a growing dominance in the market [10][8]. Group 2: Impact on Domestic Industry - The price of U.S. general interface chips has dropped from 3.00 CNY per unit in 2022 to 1.55 CNY in 2024, a cumulative decrease of 48.33%, while domestic prices have fallen by only 33.59% in the same period [11][15]. - Domestic companies have reported a significant decline in profitability, with average gross margins for similar products dropping by 33.41% in 2024 compared to 2023 [15]. - The domestic semiconductor industry has shifted from profit to loss since 2023, with losses expected to increase by 7.05% in 2024 and a 17 percentage point drop in operating rates since 2022 [15][18]. Group 3: Support from Industry Associations - The China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the China Semiconductor Industry Association have expressed support for the anti-dumping investigation, emphasizing the need for fair competition [16][17]. - Both associations highlight the adverse effects of U.S. unilateral actions on the global supply chain and advocate for a fair market environment to foster healthy industry growth [16][17].