China probes U.S. chip subsidies, alleging harm to mature node chipmakers

Beijing attacks Biden's CHIPS and Science Act promoting research and production

Beijing alleges that U.S. subsidies under the CHIPS and Science Act have unfairly helped American producers export mature node chip products to China. © Reuters

January 17, 2025 05:04 JST

BEIJING (Reuters) -- China will launch an investigation into U.S. government subsidies to its semiconductor sector over alleged harm caused to Chinese mature node chipmakers, the Commerce Ministry said on Thursday.

Unlike the cutting-edge chips that power artificial intelligence models, mature node chips are cheaper, easier to manufacture and used for less complex tasks, including home appliances and communications systems.