Chip File Photo: VCG

 
The dumping margin of certain simulation chips originating from the US and exported to China has exceeded 300 percent, according to application documents submitted by the Jiangsu Semiconductor Industry Association, which also showed the products' prices have continued to decline sharply, as MOFCOM on Saturday launched two probes into US chip products and measures, including an anti-dumping investigation on simulation chips and an anti-discrimination probe on integrated circuit (IC) measures.

According to the application documents submitted by the Jiangsu Semiconductor Industry Association, the relevant US producers include four companies: Texas Instruments, Analog Devices (ADI), Broadcom, and Onsemi. Preliminary evidence submitted by the association shows that during the period under investigation, the prices of the products in question originating from the US continued to decline sharply, with dumping margins on exports to China exceeding 300 percent.
 
The association noted that these products held a significant share of the Chinese market, accounting for 35.40 percent in 2022, 42.74 percent in 2023 and 44.98 percent in 2024, with an average annual share of 41 percent. The share increased by 7.34 percentage points in 2023 and 2.23 percentage points in 2024 compared with the previous year, representing a cumulative rise of 9.57 percentage points from 2022 to 2024.

In terms of import volume, the combined imports of the products under investigation reached 1.159 billion units in 2022, 1.299 billion units in 2023 and 1.590 billion units in 2024, showing a marked upward trend. Meanwhile, their average prices fell from 3.36 yuan ($0.47) per unit in 2022 to 2.21 yuan in 2023 and 1.62 yuan in 2024, representing year-on-year declines of 34.32 percent and 26.57 percent, and a cumulative drop of 51.77 percent over the three years.

MOFCOM on Saturday issued Announcement No. 27 of 2025, launching an anti-dumping investigation into imports of certain simulation chips originating from the US. At the same time, the ministry released Announcement No. 50 of 2025, initiating an anti-discrimination investigation into US measures concerning China's IC sector.

According to Announcement No. 27 of 2025, MOFCOM received on July 23, 2025, an official anti-dumping investigation application from the Jiangsu Semiconductor Industry Association, acting on behalf of the domestic simulation chip industry. The applicant requested an anti-dumping investigation into imports of certain simulation chips originating from the US.

MOFCOM, in line with the Regulations of the People's Republic of China on Anti-dumping, reviewed the applicant's qualification, the product under investigation, the like product in China, the impact on the domestic industry, and the situation of the country concerned. Its preliminary examination found that the applicants' combined output of relevant simulation chips meets the qualification requirements, and the application contains the content and evidence required under Articles 14 and 15 of the regulations for initiating an anti-dumping investigation.
Based on the review and relevant laws and regulations, MOFCOM decided to launch an anti-dumping investigation into imports of certain simulation chips from the US, effective September 13, 2025.

On the same day, MOFCOM issued Announcement No. 50 of 2025, launching an anti-discrimination investigation into US measures targeting China's IC sector.
Preliminary evidence and information obtained by MOFCOM indicate that the US measures under investigation fall under the circumstances specified in Article 7 of the Foreign Trade Law of the People's Republic of China, namely discriminatory prohibitions, restrictions or other similar measures taken against China in trade.
MOFCOM, in line with relevant law, decided to launch an anti-discrimination investigation into the US measures starting September 13, 2025. The probe will last three months and may be extended if necessary, the announcement said.

In response to a media query, the MOFCOM's spokesperson said that in recent years the US has imposed a series of prohibitions and restrictions against China in the integrated circuit sector, including Section 301 investigations and export control measures. Such protectionist practices amount to discrimination against China and are aimed at containing its development of advanced computing chips and artificial intelligence. These measures not only harm China's development interests but also seriously disrupt the stability of global semiconductor industrial and supply chains, the spokesperson noted, stressing that China firmly opposes them.

The China Semiconductor Industry Association also issued a response late Saturday, voicing support for the two investigation announcements released by MOFCOM.

The association said that the healthy development of the semiconductor industry requires a fair environment. It supports and encourages enterprises to advance the sector through continuous technological innovation, coordination across the industrial chain, and equal and mutually beneficial international cooperation, engaging in fair competition under market rules to jointly promote progress in the semiconductor industry.
The association vowed to fully back and cooperate with the investigation, stressing its determination to uphold fair trade and protect the industry's lawful rights and interests, per the statement.

Global Times