US semiconductor tensions deepened as China’s Ministry of Commerce launched an anti-dumping investigation into certain analog integrated circuit (IC) chips imported from the U.S., raising tensions just days before crucial trade talks in Madrid. The probe will focus on commodity interface ICs and gate driver ICs, products commonly made by major U.S. firms such as Texas Instruments and ON Semiconductor.
The probes come at a sensitive moment in global trade relations. US semiconductors, the backbone of modern technology, power everything from smartphones and automobiles to advanced weapons systems. With Washington tightening restrictions on Chinese access to advanced chip technology, Beijing’s retaliation is being seen as both economic leverage and a political signal.
According to trade analysts, the investigations could impact major U.S. firms such as Intel, Qualcomm, and Micron us semiconductor market, all of which count China as one of their largest markets. “This is China’s way of reminding Washington and its allies that supply chains run both ways,” said Mei Zhang, a Shanghai-based trade expert. “Any disruption here could reverberate through industries worldwide.”
The announcements of the probes come shortly after the U.S. on Friday added 23 Chinese companies to its “entity list,” restricting their access to American goods and technology for allegedly acting against U.S. national security and foreign policy interests.
The blacklist includes two firms accused of procuring chipmaking equipment for leading Chinese manufacturer SMIC, alongside other companies tied to defense and advanced computing. Washington officials said the move was part of a broader strategy to curb Beijing’s access to sensitive US semiconductor technologies, a step that has further fueled tensions across the global chip supply chain.
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The Madrid talks, set to include senior U.S., Chinese, and European officials, were initially aimed at easing tensions over tariffs and supply chain disruptions. But with Beijing escalating its scrutiny of U.S. chipmakers, diplomats now expect technology policy to dominate the agenda. Some observers believe China’s latest move is calculated to give it bargaining power at the negotiating table.
Meanwhile, Washington has denounced the probes as politically motivated. A spokesperson from the U.S. Trade Representative’s office stated, “These investigations are baseless and represent another attempt by China to intimidate us semiconductor companies operating in its market.”
The upcoming U.S.-China talks in Spain will be the fourth major in-person meeting this year as the two countries seek to maintain a trade truce that reduced retaliatory tariffs on both sides, restored the flow of Chinese rare earth minerals to the United States, and reopened dialogue on US semiconductor supply chains and market access. Officials are expected to address not only tariffs but also the broader impact of technology restrictions and export controls on the global chip industry.
For global markets, the uncertainty adds yet another layer of volatility. Semiconductor stocks slipped on Wall Street following the announcement, while Asian markets saw mixed reactions. Analysts warn that if the probes escalate into sanctions or export restrictions, the consequences for global supply chains could be severe.