The United States has started an investigation into China's methods of supporting its semiconductor industry. This probe comes just before a new president takes office and focuses on what Washington calls "foundational" chips. These chips are used in various industries like cars, healthcare, and infrastructure. In the past, China has been accused of using unfair practices to make its semiconductor industry stronger. This includes setting market share targets and giving subsidies. While the US has mainly targeted China's advanced AI chips, the focus is now shifting towards older, "legacy" chips. Some companies worry that increased Chinese production could hurt their business, as seen with solar panels. The Covid-19 pandemic showed how important these older chips are, as shortages caused problems for many industries.
