US to Launch Trade Investigation on Older Types of CN Chips

This is going to hurt the US far more than it will China.

The US has very little capacity to produce legacy chips at a realistic price. It is a mass-market product that is quickly being dominated by China, which supplies the global electronics industry. The US can't undo this without causing a great deal of harm to itself and its consumers.

Nobody in their right mind will invest tens of billions in legacy chip manufacturing in new locations that don't have the same supply chain ecosystem that China offers - including an endless amount of downstream manufacturers.

China accounts for 1/3rd of global electronics manufacturing, much of which ends up on store shelves at Walmart, Target, and Costco. It results in enormous cost-advantages for electronics manufacturers who can source most inputs locally. Do American consumers really want to pay 50% to 100% more for a flat-screen TV, wireless routers, or air purifiers?