On January 17, 2025, China’s commerce ministry launched an investigation into US government subsidies to its semiconductor sector, alleging harm to Chinese mature node chipmakers.

The probe centers on the CHIPS and Science Act, which allocated US$52.7 billion in 2022 to boost US semiconductor production.

China argues that these subsidies give US companies an unfair edge, enabling them to export mature node chips to China at lower prices, harming local industries.

The China Semiconductor Industry Association (CSIA) supports the investigation, criticizing US policies as unfair.

This follows growing tensions between the US and China over the semiconductor market, with both sides accusing each other of market disruptions.

The Chinese government has not specified any outcomes from the investigation.