The U.S. Commerce Department said on Thursday it would launch an investigation into the U.S. semiconductor supply chain and defense industrial base to address national security concerns about chips from China. The investigation aims to determine how U.S. companies source so-called legacy chips, especially current-generation and mature-node semiconductor products, as the U.S. Commerce Department will provide nearly $40 billion in subsidies for semiconductor chip manufacturing.
The U.S. Department of Commerce said the investigation, which will begin in January next year, aims to "reduce the national security risks posed by China."
Commerce Secretary Gina Raimondo said: "Over the past few years, we have seen potential signs that (China) has taken some concerning practices to expand its companies' traditional chip production and make it more difficult for American companies to compete."