The Chinese Ministry of Commerce (MOFCOM) announced it has received complaints from domestic companies about unfair subsidies provided by the Biden administration to U.S. chipmakers under the CHIPS and Science Act, reports state-owned GlobalTimes. As a result, China launched an investigation into U.S. government subsidies, claiming they harm Chinese chipmakers that produce chips on mature process technologies, Reuters reports.
The Chinese Ministry of Commerce alleges that subsidies under the CHIPS and Science Act, which allocated $52.7 billion for U.S. semiconductor production, research, and workforce development, give American companies an unfair edge. These subsidies reportedly allow U.S. chipmakers to export mature node chips to China at reduced prices, undermining Chinese competitors.
