China Turns Legacy Chips Into a Trade Weapon

China is taking a tougher stance on American chipmakers, launching investigations into their operations in the country. This move is seen as a response to the Biden administration's push for a deal on the popular social media platform TikTok, which is owned by the Chinese company ByteDance. The Chinese government is scrutinizing the activities of firms like Micron, a major US semiconductor manufacturer, citing potential national security concerns. This action is widely interpreted as a retaliatory measure, as the US has taken a more assertive approach towards Chinese technology companies, including the potential ban of TikTok. The escalating tensions between the world's two largest economies highlight the increasing importance of semiconductor technology in the ongoing trade and technology rivalry. The outcome of these developments could have significant implications for global supply chains and the future of the semiconductor industry.