Official statements from U.S. or Chinese trade representatives

U.S. Opens Trade Probe as China Boosts Domestic Chip Production to 15% for EVs in $80 Billion Semiconductor Independence Push

Dec 31, 2024, 10:15 AM

China has increased its domestic chip production to meet 15% of its electric vehicle (EV) needs, as part of a broader strategy to achieve semiconductor independence. This move has prompted the United States to initiate a trade probe, citing concerns over China's efforts to dominate the $80 billion automotive chip market. The U.S. government is particularly focused on China's ambition to use domestically produced chips in its EVs, which require approximately twice as many chips compared to traditional vehicles. The situation reflects escalating tensions between the two nations regarding technology and trade.