On the same day that MOFCOM launched an anti-discrimination investigation into U.S. semiconductor restrictions, China initiated an anti-dumping probe targeting U.S. analogue integrated circuit chips manufactured on mature nodes (≥40nm).
The investigation, authorized under the Foreign Trade Law (FTL), is expected to last one year, with potential for preliminary tariffs based on early findings. Companies likely impacted include Texas Instruments, ON Semiconductor, Analog Devices, and Broadcom, which collectively hold 41% of China's domestic market share.
This move follows a series of retaliatory actions, including a SAMR probe into Nvidia’s acquisition of Mellanox, and is likely a response to the U.S. adding 23 Chinese firms to its Entity List as well as a measure to gain more leverage in the trade negotiations.
The 40nm threshold is strategically chosen, aligning with the capabilities of Chinese domestic manufacturers and minimizing disruption to local industry.
China has used anti-dumping investigations as geopolitical tools in the past, as for example in the dispute with the EU over electric vehicles tariffs. So far, however, China has avoided to target such a critical sector as the semiconductor industry.
