The US Trade Representative’s Office (USTR) will hold a hearing on Mar. 11 regarding Chinese-made legacy semiconductors.

This could lead to increased tariffs on these chips, which are used in products like automobiles, washing machines, and telecom equipment.

The USTR launched an investigation in December 2024, citing concerns over Beijing’s state-supported semiconductor industry.

Since Jan. 1, 2025, a 50% tariff on Chinese semiconductors has been in effect.

A Commerce Department report found that two-thirds of US semiconductor-using products contain Chinese-made legacy chips, with half of surveyed companies unaware of their chip origins, including those in defense.

The investigation falls under Section 301 of the Trade Act of 1974, the same law used for tariffs on US$370 billion in Chinese goods during the Trump administration.

Stakeholders at the hearing include the China Association of Automobile Manufacturers, defending China’s chip development, and the Foundation for American Innovation, arguing that subsidies harm US businesses.

The hearing’s outcome could shape US-China trade policies and the global semiconductor market.