According to a recent Bloomberg report, US Commerce Department officials said that some Chinese chipmakers use low prices to undercut competitors, and the US government wants to prevent China from dominating the industry like the steel and solar industries.
According to reports, one of the next restrictive strategies of the US Department of Commerce on the Chinese semiconductor industry may be to impose tariffs on chips using mature process nodes. If tariff barriers are formed, this means that the hitting surface is further expanded to China's large number of fabless, IDM and wafer foundry companies.
Commerce Department officials said that while Chinese manufacturers have not been able to dominate the global market with chips made with advanced processes, "China's heavy subsidies to the semiconductor industry" have given a competitive advantage to low-cost chips made with mature processes, undermining sales for US and Western chip companies.
Since January, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce has surveyed more than 100 companies in industries such as automotive, aerospace and defense to understand the extent of U.S. dependence on mature (such as 40nm and above) but important semiconductors made in China.
As one of the most common nodes, 40nm covers logic, digital-analog mixing, NVM, PMIC, CIS and other major product/process types in the industry, and specific devices include MCU, DSP, CIS, ADC, DDIC, FPGA, MPU, PMIC and many other models, which has a wide impact.
Us Commerce Secretary Gina Raimondo said: "Over the past few years, we have seen a number of worrisome practices that China may engage in that are designed to expand its companies' mature chip production and make it harder for American companies to compete." This survey will inform our next steps."

One official, speaking on condition of anonymity, said the measures could include tariffs or other trade tools. Recently, the US House Select Committee on China in a bipartisan report urged the US government to impose tariffs on mature chips from China.
Despite repeated claims of "countervailing", according to the US Chip and Science Act 2022, at least $2 billion of the total $100 billion subsidy package will be used for local mature manufacturing processes, including many US manufacturing companies, including GF.

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