China is requesting sensitive data from US companies as part of an investigation into chips

China has asked some US semiconductor companies to provide sensitive information related to their sales in the Chinese market, the world’s largest for chips, as part of an investigation targeting United States suppliers. On Wednesday, the Trade Remedies and Investigation Bureau of the Chinese Ministry of Commerce published questionnaires to collect information on American-made analog integrated circuit chips, which are the type produced by companies such as Texas Instruments and Analog Devices, as part of an anti-dumping investigation. Beijing asks US companies to disclose sensitive data. The Chinese authorities intend to obtain data on sales activity within China, including a comparison between the costs and profit margins of these chips in the US and Chinese markets. Although Beijing did not name the companies targeted, the initial investigation and recent developments are seen as an indication of China’s ability to restrict trade by US companies in response to Washington’s restrictions on technology exports. It is still unclear which companies will be asked to fill in these questionnaires. Also read: Why have electronic chips turned into a global arena of conflict? Among other requests, Beijing’s Trade Fairness Bureau requires companies to provide the names of Chinese customers and details of transactions, including sales volume and various costs from logistics to warehousing. The questionnaires also request information about the raw material suppliers that do business with these US chip companies. Companies will be given 37 days to submit their responses. The companies were given 37 days to submit their responses. Representatives for Texas Instruments and Analog Devices did not respond to requests for comment sent outside normal business hours. Chips are a great arena of confrontation. China opened two investigations targeting US chip companies last month, coinciding with the resumption of trade talks between the world’s two largest economies. Semiconductors have become a major arena of confrontation in the race between the two countries, after Washington restricted Beijing’s access to the most advanced artificial intelligence processors and used export licenses for some of Nvidia’s less advanced chips as a drawcard. Chinese officials have responded to these restrictions, expressing reservations about the security risks. Also Read: China Pushes Artificial Intelligence Chip Sector Forward… But Will It Succeed? The analog chips included in the Chinese probes are used to enable digital systems to communicate with the real world, performing tasks such as amplifying radio signals and regulating power and voltage. Although it does not require advanced manufacturing techniques, it is an essential component in a wide range of devices, from smartphones and electric vehicles to medical imaging devices.

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