Biden Prepares to Target Chinese Legacy Chips With Trade Investigation

Published On Dec 16, 2024, 11:55 AM

The Biden administration is considering a trade investigation into China's production of older-model semiconductors due to concerns that dependence on these chips poses a national security risk. This investigation could lead to tariffs, import bans, or other measures against certain Chinese chips and related products. The choice of actions will ultimately rest with the incoming Trump administration. Officials are worried that China's significant investments in chip manufacturing could undermine U.S. factories and lead to increased dependence on Chinese supply chains, potentially introducing cybersecurity threats.

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SOXX View SOXX chart on TradingView

Positive

The proposed investigation and potential tariffs on older semiconductors from China may lead to increased manufacturing costs and supply chain disruptions in the semiconductor market, impacting companies reliant on these chips.

AMD View AMD chart on TradingView

Negative

If tariffs or bans are enforced, companies heavily invested in or reliant on Chinese semiconductor manufacturing may face challenges, potentially impacting their profitability.

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