The Biden administration has initiated a trade investigation targeting Chinese-made legacy semiconductors, which power everyday goods like cars and telecom equipment. This ‘Section 301’ probe aims to address concerns about China’s state-driven expansion in chip manufacturing, which US officials warn could harm American semiconductor producers. Departing President Joe Biden had already imposed a 50% tariff on Chinese semiconductors, set to take effect 1 January, while tightening export controls on advanced AI and memory chips.
Commerce Secretary Gina Raimondo revealed that Chinese legacy chips account for two-thirds of semiconductors in US products, with many companies unaware of their origin—a finding she called alarming, particularly for the defence industry. US Trade Representative Katherine Tai stated that China’s subsidised chip pricing threatens global competition, enabling rapid capacity growth and undercutting market-oriented producers.
China’s commerce ministry has criticised the probe, calling it protectionist and a potential disruptor to global supply chains. Meanwhile, a public hearing on the issue is scheduled for March, with the probe expected to conclude within a year. The investigation follows the COVID-19 pandemic’s impact on semiconductor supply chains, prompting the US efforts to bolster domestic chip production with $52.7 billion in subsidies.
As the Biden administration transitions to President-elect Donald Trump’s leadership in January, this probe may offer Trump an opportunity to escalate tariffs on Chinese imports, echoing the trade practices he implemented during his prior term. Critics, including the US tech industry, have urged officials to approach the investigation collaboratively to avoid further disruption.
Samsung Electronics, Texas Instruments, and Amkor Technology are set to receive a combined $6.75 billion in chip manufacturing incentives from the US Commerce Department. The funding aims to bolster domestic semiconductor production and strengthen the supply chain.
Samsung will receive up to $4.745 billion, slightly reduced from the initial $6.4 billion estimate, reflecting scaled-down investment plans. The South Korean tech giant plans to invest $37 billion by 2030 to build chip production facilities, a research centre, and a packaging site. These projects are expected to solidify the US as a hub for advanced semiconductor manufacturing.
Texas Instruments has secured up to $1.61 billion for expanding its chip production facilities in Texas and Utah. The company is investing over $18 billion through 2029, creating 2,000 manufacturing jobs. Amkor Technology will receive $407 million to help build a $2 billion semiconductor packaging plant in Arizona, its largest in the US. This facility will cater to chips for autonomous vehicles, 5G/6G, and data centres.
These awards form part of a broader $39 billion subsidy programme for domestic semiconductor manufacturing. Over $33 billion of the allocated funding has now been finalised, with the US positioned as the sole nation hosting all five leading-edge chipmakers.
The UK’s Competition and Markets Authority (CMA) has voiced concerns over Synopsys’ proposed $35 billion acquisition of Ansys, claiming the deal could harm innovation, reduce product quality, and increase costs in the semiconductor design and light-simulation software markets. The regulator fears diminished competition could negatively impact UK businesses and consumers, particularly in sectors such as artificial intelligence and cloud computing, which rely heavily on semiconductor technology.
Synopsys, a leader in chip design software, announced the acquisition in January, aiming to combine its tools with Ansys’ diverse software offerings, used in industries ranging from aerospace to consumer goods. However, the CMA has highlighted risks of reduced consumer choice and a potential stifling of advancements in the sector. If these concerns are not adequately addressed, the regulator may initiate an in-depth investigation into the merger.
In response, Synopsys has proposed selling its optical solutions business to Keysight Technologies, a move it believes will satisfy the CMA’s concerns. A company spokesperson expressed confidence in resolving the regulatory hurdles and expects the deal to close in the first half of 2025. The CMA’s final decision could shape the future landscape of competition in the semiconductor and simulation software industries, as global demand for advanced technologies continues to grow.
President-elect Donald Trump hinted at allowing TikTok to continue operating in the US, at least temporarily, citing the platform’s significant role in his presidential campaign. Speaking to conservative supporters in Phoenix, Arizona, Trump shared that his campaign content had garnered billions of views on TikTok, describing it as a “beautiful” success that made him reconsider the app’s future.
TikTok’s parent company, ByteDance, has faced pressure from US lawmakers to divest the app over national security concerns, with allegations that Chinese control of TikTok poses risks to American data. The US Supreme Court is set to decide on the matter, as ByteDance challenges a law that could force divestment. Without a favourable ruling or compliance with the law, TikTok could face a US ban by January 19, just before Trump takes office.
Trump’s openness to TikTok contrasts with bipartisan support for stricter measures against the app. While the Justice Department argues that Chinese ties to TikTok remain a security threat, TikTok counters that its user data and operations are managed within the US, with storage handled by Oracle and moderation decisions made domestically. Despite ongoing legal battles, Trump’s remarks and a recent meeting with TikTok’s CEO suggest he sees potential in maintaining the platform’s presence in the US market.
According to a report by Nikkei Asia, Japan’s competition watchdog, the Japan Fair Trade Commission (JFTC), is expected to find Google guilty of violating the country’s antitrust laws. The JFTC is reportedly preparing to issue a cease-and-desist order, directing Google to halt its monopolistic practices. The investigation, which began last October, focuses on Google’s dominance in web search services.
Google has yet to comment on the allegations, and the JFTC has also not responded to requests for a statement. This investigation follows similar antitrust actions in Europe and other major economies, where concerns have been raised about Google’s market power. The company’s Chrome browser, which is the most widely used globally, plays a central role in its advertising business by providing valuable user data.
This development comes amid increasing scrutiny of Google’s practices. In the US, the Department of Justice has argued that Google should be forced to divest Chrome and be banned from re-entering the browser market for five years as part of efforts to address its search engine monopoly.
Democratic Senator Ed Markey and Republican Senator Rand Paul are urging President Joe Biden to extend the January 19 deadline for ByteDance, the China-based owner of TikTok, to sell the app’s US assets or face a nationwide ban. The Supreme Court is set to hear arguments on January 10 regarding ByteDance’s legal challenge, which claims the law mandating the sale violates First Amendment free speech rights. In their letter to Biden, the senators highlighted the potential consequences for free expression and the uncertain future of the law.
The controversial legislation, signed by Biden in April, was passed due to national security concerns. The Justice Department asserts that TikTok’s vast data on 170 million American users poses significant risks, including potential manipulation of content. TikTok, however, denies posing any threat to US security.
The debate has split lawmakers. Senate Minority Leader Mitch McConnell supports enforcing the deadline, while President-elect Donald Trump has softened his stance, expressing support for TikTok and suggesting he would review the situation. The deadline falls just a day before Trump is set to take office on January 20, adding to the uncertainty surrounding the app’s fate.
The US Department of Commerce has asked Nvidia to investigate how its AI chips ended up in China despite ongoing export restrictions, The Information reported. In response, Nvidia has called on major distributors like Super Micro and Dell to conduct customer inspections in Southeast Asia. Nvidia chips, embedded in server products, have allegedly been smuggled to Chinese entities through various schemes, including duplicating or altering serial numbers.
Super Micro and Dell stated they strictly enforce export regulations and will terminate relationships with partners who violate these controls. Super Micro also confirmed it investigates unauthorised exports and complies with all US export laws.
These developments come as the Biden administration intensifies its crackdown on chip sales to China. Despite the broadened restrictions on high-end AI chips in 2023, Chinese institutions reportedly acquired Nvidia chips through resellers. Earlier this month, the US further limited semiconductor exports to 140 additional companies, underscoring efforts to control the flow of advanced technology to China.
According to sources familiar with the matter, Apple is in early talks with Tencent and ByteDance to integrate their AI models into iPhones sold in China. This comes as Apple rolls out OpenAI’s ChatGPT in other markets, but regulatory restrictions in China prevent the availability of the chatbot there. To comply with local rules and counter the declining market share, Apple is exploring partnerships with Chinese firms that already have government-approved AI models.
Potential partners include ByteDance’s Doubao and Tencent’s Hunyuan, part of a growing field of AI services in China. Although Apple previously discussed using Baidu’s Ernie model, reports suggest technical disagreements halted progress. Baidu’s shares dropped following news of these challenges, while Tencent’s stock saw a boost.
Apple faces increasing pressure in China’s competitive smartphone market, where domestic rivals like Huawei are surging ahead. Huawei’s recent AI-equipped models have attracted consumers, contributing to a 42% spike in sales. In contrast, Apple’s third-quarter sales dipped slightly, underscoring the need for a successful AI integration strategy to regain momentum in China.
Apple has accused Meta of making excessive interoperability requests that could compromise user privacy and security, intensifying the rivalry between the two tech giants. Under the European Union’s Digital Markets Act (DMA), Apple must allow competitors access to its services or face significant fines. Apple claims Meta’s 15 requests — more than any other company — could expose sensitive data like messages, emails, and passwords.
Meta, which seeks integration for products like its Quest VR headsets and smart glasses, dismissed Apple’s privacy concerns as a cover for anticompetitive practices. Apple cited Meta’s past privacy violations in Europe as a reason for caution.
Meanwhile, the European Commission has outlined measures to ensure Apple complies with the DMA, including clear timelines and feedback mechanisms for developers. A final decision on Apple’s compliance with the law is expected in March 2025.
Italy’s antitrust authority has concluded its investigation into Booking.com, finding the travel giant’s proposed changes sufficient to resolve concerns about its dominance in the market. The probe, which began in March, scrutinised whether the company’s practices restricted competition and led to higher prices for consumers.
The Italian watchdog highlighted that Booking.com’s Preferred Partner Programme risked stifling competition by favouring certain hotels while reducing consumer choice. As part of its commitments, the platform agreed not to consider prices offered by hotels on other booking channels when managing or promoting participating properties.
These adjustments are intended to ensure fairer competition in the online travel sector, preventing practices that could inflate costs or limit options for users. By addressing these issues, Booking.com avoids further regulatory action and strengthens its position in Italy’s travel market.
