The European Commission is seeking feedback from the semiconductor industry on China’s increased production of older-generation computer chips, two sources told Reuters. This consultation precedes two voluntary industry surveys due in September.
The Commission aims to assess the use of legacy chips in supply chains and explore joint measures with the US to address dependencies. This move comes amid rising EU-China tensions, highlighted by the recent imposition of up to 37.6% tariffs on Chinese electric vehicles.
China’s investment in legacy chips, spurred by US restrictions on advanced chips, raises concerns about potential oversupply. The Commission’s antitrust chief Margrethe Vestager and a recent 712-page report signal Brussels’ readiness for further investigations.
The new surveys will gather data on chip sourcing, products, pricing, and competition, including insights from major European firms like ASML, Infineon, STMicroelectronics, and NXP, which have mixed stakes in China’s chip market.
