Why China launched probe into US chips – and what it means for domestic firms

Analysts believe the investigation could force foreign firms to cede market share, triggering a wave of domestic sourcing

In this explainer, the Post examines what you need to know about the investigation.

The probe, which will last a year, targets general-purpose interface chips and gate driver chips built using process nodes of 40nm and above, according to China’s Ministry of Commerce.

These so-called legacy chips, produced through mature manufacturing processes, are widely used in power management and data transmission for cost-sensitive applications with moderate performance requirements, such as smart home appliances and industrial motor drives.

Major US chipmakers expected to be affected include Texas Instruments (TI), ON Semiconductor, Analog Devices (ADI) and Broadcom.