The Biden-Harris Administration has announced new measures to protect American workers and businesses from what it describes as China's unfair trade practices in the semiconductor sector. The administration aims to support a robust domestic industry for foundational semiconductors, which are vital to the U.S. economy and national security.
A key action is the launch of a Section 301 investigation by the Office of the U.S. Trade Representative. This investigation will examine China's targeting of foundational semiconductors, also known as legacy or mature node chips, and its impact on the U.S. economy. It will also assess China's acts, policies, and practices concerning silicon carbide substrates and other wafers used in semiconductor fabrication.
In addition to this investigation, the administration is focused on boosting domestic semiconductor manufacturing through efforts such as CHIPS and Science Act funding. This initiative allocates at least $2 billion for mature semiconductors as part of President Biden's vision for revitalizing American economic leadership.
The Department of Commerce has facilitated billions in private sector investments in projects across states like Texas, Utah, Vermont, New York, and California. These projects aim to strengthen supply agreements with critical infrastructure industries while maximizing predictability and quality of domestically manufactured chips.
Furthermore, steps are being taken to reduce national security risks in federal supply chains by ensuring federal agencies procure secure chips. The administration is implementing provisions from the James M. Inhofe National Defense Authorization Act for FY 2023 that restrict procurement from certain Chinese entities.
Efforts also include working with international partners to enhance cooperation on semiconductor supply chains. The State Department's International Technology Security and Innovation Fund has partnered with countries such as Costa Rica, Panama, Vietnam, Indonesia, India, Kenya, the Philippines, and Mexico to promote diversification in these supply chains.
President Biden emphasizes that strong alliances and a rules-based international trade system based on fair competition benefit American workers and businesses. The administration intends to continue collaborating with allies on addressing these issues.
