China Launches Probe Into U.S. Chip Subsidies Over Alleged Unfair Competition

Beijing claims U.S. government funding for semiconductor firms harms Chinese mature node chipmakers and distorts global market dynamics.

The Chinese Ministry of Commerce announced an investigation into U.S. subsidies provided under the CHIPS and Science Act, which allocated $52.7 billion to bolster the American semiconductor industry.
China alleges that these subsidies allow U.S. companies to export mature node chips to China at low prices, undermining the competitiveness of Chinese chipmakers.
Mature node chips, essential for devices like home appliances and communication systems, are a key focus of the probe due to their widespread use and economic importance.
The investigation follows escalating tensions in the U.S.-China tech rivalry, with Washington imposing export controls on advanced AI chips and Beijing accusing the U.S. of protectionism.
The outcome of the probe could impact U.S. firms like Intel, which export mature node chips to China, though Beijing has not specified a timeline for the investigation.