Biden calls for launching Section 301 investigation into China's semiconductor industry

US President Biden has instructed the Office of the United States Trade Representative to launch a Section 301 investigation to assess China's dominant behavior in mature nodes and its impact on the US economy, especially China's impact on silicon carbide substrate or other wafer production. The investigation covers semiconductors and downstream products in key areas including defense, automobiles, medical devices, aerospace, telecommunications, power generation and power grids. In addition, the United States plans to increase the tariff rate on Chinese chips from the current 25% to 50% by 2025.