The global semiconductor race has entered a new chapter. As China launches fresh investigations into American chipmakers, tensions in the already fragile tech relationship between the world’s two largest economies are intensifying.
For investors, businesses, and policymakers, these developments carry enormous implications. This article dives deep into the story of US chipmakers under probe, exploring what these investigations mean for global trade, technological dominance, and the future of the semiconductor industry.
What You Will Learn in This Article
- Why US chipmakers are under probe and how China’s anti dumping and anti discrimination investigations are shaping the semiconductor conflict.
- Actionable insights into how companies, policymakers, and businesses can respond to rising risks in the China semiconductor investigation.
- Future outlook on the semiconductor trade war 2025, including possible retaliation, global supply chain shifts, and the geopolitical stakes.
China’s Semiconductor Investigations Explained
In September 2025, the China Ministry of Commerce semiconductor probe sent shockwaves through the global tech market. The ministry announced two investigations targeting American chip companies:
Anti Dumping Investigation into analog IC chips imported from the US. These are widely used in industrial electronics, consumer devices, and automotive technology.
Companies like Texas Instruments and Analog Devices Inc. are directly in the spotlight, raising fears of restricted access to the Chinese market.
Anti Discrimination Investigation against US policies targeting Chinese firms. This appears to be a direct response to Washington’s sanctions and export restrictions on Chinese semiconductor companies.
For Beijing, this move is strategic. By framing the actions as legal probes, China is signaling that it will not remain passive in the escalating US vs China semiconductor war.
Why Are US Chipmakers Under Probe?
China’s semiconductor dependency has long been viewed as a national vulnerability. Despite investing billions into its domestic chip industry, the country still relies on imports for advanced chips and design expertise.
Targeting US semiconductor companies in China serves three goals for Beijing, Leverage in trade talks Ahead of upcoming negotiations, the probes give China bargaining power.
Market retaliation By putting pressure on firms like Texas Instruments and Analog Devices, China is countering American sanctions on Huawei, SMIC, and other Chinese tech giants.
It shows China’s determination to fight back in the semiconductor trade war 2025 rather than remain a passive player.
Texas Instruments, a leader in analog chips used in everything from smartphones to automobiles, has been named in the Texas Instruments China probe.
The company earns a significant portion of its revenue from Asia, particularly China, which is the largest global consumer of semiconductors. In 2024, TI’s revenue from China accounted for nearly 40% of its global sales.
The probe could restrict market access, increase tariffs, or lead to fines, threatening not only TI’s bottom line but also global supply chains.
This case shows how the investigation could ripple across industries dependent on analog chips, from medical devices to consumer electronics.
Analog Devices, another American chipmaker under scrutiny, specializes in analog, mixed signal, and digital signal processing technologies.
The Analog Devices China investigation could have wide reaching consequences because, China is a key market for its industrial and automotive customers.
Restrictions may disrupt partnerships with local Chinese firms, forcing them to seek alternatives from domestic suppliers or non US sources.
This case illustrates the growing uncertainty multinational companies face when navigating between US sanctions and Chinese retaliations.
The US vs China Semiconductor War
The probes cannot be seen in isolation. They are part of a larger US vs China semiconductor war that has intensified over the past five years.
Washington has restricted exports of advanced chips and equipment to Chinese firms, citing national security concerns.
Beijing has invested billions in domestic semiconductor manufacturing and now is hitting back with retaliatory probes. This tit for tat escalation is not only about chips it’s about global technological dominance.
The China semiconductor investigation could have cascading effects, Car manufacturers already suffering from chip shortages may face further disruptions.
Consumer Electronics, Smartphones, laptops, and IoT devices depend heavily on analog chips. Industrial Technology, From energy systems to medical equipment, industries relying on TI and Analog Devices will feel the pinch.
As a result, global businesses may start diversifying supply chains, looking toward Taiwan, South Korea, or even domestic US production to hedge against risks.
According to a 2025 report by SEMI Semiconductor Equipment and Materials International, China accounts for nearly 33% of global semiconductor demand.
These probes represent China’s calculated attempt to flip the narrative from being a target of sanctions to an enforcer of trade rules, says Dr. Helen Zhang, a professor of International Trade at Tsinghua University.
A Deloitte survey of 200 global tech executives found that 68% expect the semiconductor conflict to escalate further in 2025, affecting investment decisions and R&D priorities.
Imagine a European automotive company sourcing analog chips from Texas Instruments. With the China chip industry retaliation in play, supply lines get disrupted.
To avoid production halts, the company pivots to Taiwanese suppliers at higher costs. This adds pressure on end consumers, leading to price hikes in electric vehicles.
This example highlights how the probes may indirectly affect everyday products and consumers far beyond the US and China.
How Businesses Can Respond
Companies affected by the probes or operating in the semiconductor ecosystem can adopt these strategies. Don’t rely too heavily on one region. Spread procurement across the US, Taiwan, South Korea, and Europe.
Establish partnerships with domestic chipmakers in China or other Asian markets to reduce risk. Assign dedicated teams to track updates from the China Ministry of Commerce semiconductor probe and US regulatory bodies.
Run simulations to prepare for possible tariffs, export bans, or supply shortages. Industry associations should push for policy dialogue between Washington and Beijing to reduce uncertainty.
Semiconductor Trade War 2025
The semiconductor trade war 2025 will likely intensify before it cools. With elections approaching in the US and China doubling down on self reliance, both sides will continue to weaponize chips as strategic assets.
Three possible scenarios for the future, More US companies come under probe, and new export bans are introduced. Both nations use the probes as leverage to strike a temporary truce. Companies accelerate efforts to reduce dependency, leading to a fragmented global chip ecosystem.
China’s decision to place US chipmakers under probe is more than a legal maneuver it’s a geopolitical signal with far reaching consequences.
For businesses, it means higher uncertainty and a need for diversified strategies. For governments, it signals that the semiconductor conflict is central to global power struggles.
For consumers, it could translate into more expensive electronics and cars as supply chains adjust.
The coming months will test the resilience of global supply chains and the ability of US and Chinese leaders to balance rivalry with cooperation.
👉 What do you think? Will these probes push the world closer to decoupling, or force a compromise? Share your thoughts in the comments and don’t forget to subscribe for more deep dive analysis on global tech conflicts.