China's Ministry of Commerce said on Saturday that it has initiated an anti-dumping investigation into imports of certain analog chips originating from the United States.

According to a complaint filed by the Jiangsu Semiconductor Industry Association, there are significant dumping practices by US manufacturers.

The association's submission pointed to Texas Instruments, Analog Devices Inc, Broadcom and ON Semiconductor as the key US-based producers involved. "Preliminary data reveals that during the investigation period, the prices of the products under investigation originating in the United States have continued to decline significantly, with dumping margins on exports to China exceeding 300 percent."

For instance, if the normal value of a US product is $400, but the export price to China is only $100, the dumping margin would be 300 percent.

The Jiangsu Semiconductor Industry Association also highlighted that the products under investigation have held an average annual market share of 41 percent in China in recent years. In terms of import volume, the total quantity of these chips saw a substantial increase from 1.159 billion units in 2022 to 1.299 billion in 2023, with further growth to 1.59 billion units in 2024.

In response to the Ministry of Commerce's announcement, the China Semiconductor Industry Association issued a statement supporting the investigation.

"We have taken note of the Ministry of Commerce's decision to initiate an anti-dumping investigation into imported analog chips from the US, as well as a counter-discrimination probe regarding US measures affecting China's integrated circuit sector," the CSIA said.

"The healthy development of the semiconductor industry requires a fair competitive environment. We advocate and encourage enterprises to engage in benign competition through continuous technological innovation, collaboration across the industrial chain, and mutually beneficial international cooperation based on market principles."

The association reaffirmed its commitment to supporting the investigation and safeguarding fair trade and the legitimate rights of China's semiconductor industry.