US Semiconductor Sector Faces Anti-Dumping Investigation By China Ahead Of Trade Discussions - Analog Devices (NASDAQ:ADI), Texas Instruments (NASDAQ:TXN)

In a move that could potentially affect the upcoming trade talks between China and the U.S., China has initiated two investigations against the U.S. semiconductor sector, including an anti-dumping probe.

According to a report by Bloomberg, the Chinese Ministry of Commerce has begun an anti-dumping investigation into some American-made analog IC chips, typically sold by Texas Instruments Inc. TXN and Analog Devices Inc. ADI.

Alongside this, the ministry has also launched an anti-discrimination investigation into US actions against the Chinese chip sector.

The investigations come in the wake of the U.S.’s recent addition of 23 more China-based companies to its entity list, which imposes restrictions on businesses deemed to be acting against US national security or foreign policy interests, reports Bloomberg.

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The probes have set a tense backdrop for the forthcoming multi-day meeting between top officials from both countries. U.S. Treasury Secretary Scott Bessent is set to meet with Chinese Vice Premier He Lifeng in Madrid to discuss trade, economic, and national security issues.

As per the report, the investigations and the upcoming trade talks are significant in the context of the ongoing trade negotiation stalemates and a pause on the Trump administration’s elevated tariffs on China.

Both sides are striving to negotiate a mutually beneficial deal, with semiconductors emerging as a crucial point of contention.

The outcome of these investigations and the ensuing talks could have far-reaching implications for the semiconductor industry and the broader trade relationship between the two economic superpowers.