China investigates whether CHIPS and Science Act harms its chip companies

Intel silicon spin qubit progress
(Image credit: Intel)

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. 

Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • 8086
    Oh, the Irony here is strong.
    Reply
  • _Shatta_AD_
    Fair enough… this is just tit-for-tat response to US investigating Chinese companies for receiving financial assistance and calling it unfair even though those companies do have CapEx and made significant investments likewise. So IMO, the CHIPS & Science act are in the same ballpark.
    Reply
  • das_stig
    For once no sympathy for China, they have spent decades getting state handouts to flood and dominate the markets, now the USA doing the same, they think it's unfair, cry me a river China. :cry:
    Reply
  • Pierce2623
    Last year wasn’t it Chinese companies flooding the market with legacy chips cheaper than others could produce? It’s a problem now that somebody else did it?
    Reply
  • The Historical Fidelity
    Pot calling the kettle black
    Reply