Older-generation chips are still widely used in consumer electronics, cars, appliances and the defense industry—areas that also carry strategic importance for the U.S. China could become a dominant supplier of an essential technology and then use that position to punish foreign competitors.
“Addressing nonmarket actions by foreign governments that threaten the U.S. legacy-chip supply chain is a matter of national security,” Commerce Secretary Gina Raimondo said last month, noting China’s move to expand legacy-chip production and make it harder for U.S. companies to compete. The lawmakers’ call for new efforts, including potential tariffs, is intended to counteract an overreliance on China for less-advanced chips.
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