[News] U.S. to Hold Hearing on China’s Legacy Chip Dumping, with Taiwanese Foundries Poised to Benefit

According to Economic Daily News, citing Reuters, the Office of the U.S. Trade Representative is scheduled to hold a hearing tomorrow (the 11th) on Chinese-made “legacy” semiconductors.

This investigation was launched before the end of the Biden administration. The report indicates that the U.S. may impose additional tariffs on Chinese legacy chips, which are widely used in automobiles, home appliances, and telecommunications equipment.

Earlier this year, the White House announced an increase in tariffs on Chinese semiconductors from the current 25% to 50%, which takes effect this year, as the report highlights.

Order Shift Poised to Benefit Taiwanese Suppliers

Meanwhile, as Economic Daily News further notes, industry sources anticipate that Taiwanese semiconductor companies, including UMC and Vanguard International Semiconductor (VIS), could benefit from order shifts.

The report cites VIS Chairman Leuh Fang, who stated that the trend of Western clients reducing their reliance on China is expected to significantly contribute to VIS’s revenue, particularly in the power management IC product line.

Section 301 Probe into Chinese Legacy Chips

The U.S. Department of Commerce revealed in December last year that two-thirds of semiconductor-containing products used in the U.S. incorporate legacy chips manufactured in China, as noted by Reuters. Furthermore, half of U.S. companies—including some in the defense sector—lack awareness of the origin of the semiconductors they use.

As noted by a report from UDN News, citing Bloomberg, in December 2024, former U.S. President Joe Biden officially announced the launch of a Section 301 investigation into Chinese-manufactured legacy semiconductors.

TrednForce notes that the investigation aims to tighten controls over China’s mature-node semiconductor industry, curb its rapid expansion, and address the downward pricing pressure it exerts on the global market.

According to TrendForce’s press release and report, with China’s expansion of new production capacity, Chinese foundries’ share of mature-node capacity among the world’s top ten foundries will exceed 25% by the end of 2025, with the largest capacity increase in the 28/22nm nodes.

Read more

• [News] China’s Low-Cost SiC and Mature Chips Ignite Global Semiconductor Price War
• Mature Process Capacity to Grow 6% in 2025; Chinese Foundries Lead Expansion, Says TrendForce
• [Selected Topics] IDMs Seize “China for China” Opportunities through Proactive Collaboration with Chinese Foundries in Development of Manufacturing Processes