China Looks to Challenge US in AI, US Launches Probe into Legacy Chinese Semiconductors
China’s tech giants have launched their own artificial intelligence models, aiming to challenge the United States in the field. Meanwhile, the Biden administration has launched a new probe into legacy Chinese semiconductors that may go into everything from cars to household goods and defense systems.
The investigation, launched under the Trade Act of 1974, will assess the US dependency on legacy Chinese chips in areas such as telecommunications, the electrical grid, and defense systems. The probe is also looking into China’s “acts, policies, and practices on the production of silicon carbide substrates or other wafers used as inputs into semiconductor fabrication.”
The investigation is an escalation of US pressure on China’s semiconductor industry, which has sought to target the most cutting-edge chips, particularly those used in the booming artificial intelligence sector. Chinese manufacturers, while still behind industry leaders like TSMC, are able to produce legacy chips at scale.
A potential remedy under the Trade Act of 1974 is placing tariffs on the products in question. The Biden administration has continued to target China’s tech sector this year with increased import tariffs on products from electric vehicles to semiconductors. The latest action comes just weeks before the incumbent US president hands over the reins to Donald Trump, with the probe set to be handed over to his administration to complete.