The Ministry of Commerce in Beijing announced on September 13 that it has launched an anti-dumping probe into imports of certain US-made analogue integrated circuits (ICs), including interface chips and gate driver ICs.
The Ministry claims that imports surged by more than a third between 2022 and 2024 while average prices fell by over half, creating “material injury” to domestic manufacturers.
At the same time, China has initiated a separate investigation into alleged discriminatory US measures targeting Chinese semiconductor firms. The inquiry is aimed at long-standing restrictions such as export controls, tariffs, and the placement of dozens of Chinese companies on Washington’s Entity List.
The probes were announced just days before senior trade officials from both countries are scheduled to meet in Madrid. Observers note that the timing underscores Beijing’s intention to increase pressure as negotiations approach.
The measures follow a series of moves by Washington, including the addition last week of 23 Chinese companies to the Entity List and fresh penalties on firms accused of supplying restricted tools to China’s largest chipmaker, SMIC. The United States has also expanded export controls on advanced semiconductors and manufacturing equipment, citing national security concerns.
For American suppliers of analogue chips such as Texas Instruments, Analog Devices and ON Semiconductor, the Chinese investigations raise the risk of new tariffs or import restrictions in what remains one of their largest markets.
For Chinese legacy chipmakers, meanwhile, the potential for protective measures could provide breathing room in a sector where they have struggled to compete on price.
While the outcome of the investigations is still uncertain, the escalation reinforces the trend towards decoupling in the technology sector.
With both sides hardening their positions, Madrid’s trade talks are unlikely to deliver quick resolutions. Instead, the semiconductor industry looks set for a protracted period of uncertainty as the world’s two largest economies continue to leverage critical technology as a tool of economic statecraft.
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