U.S. Chip Giants Cut Prices by Half Over Three Years; Chinese Suppliers Pushed into “Passive Price-Following”

U.S. chip giants cut prices — China’s Ministry of Commerce (MOFCOM, Shāngwùbù 商务部) announced an anti-dumping investigation on September 13, 2025.

This probe targets certain U.S.-origin analog chips, specifically general interface chips and gate-driver chips.

The investigation follows a petition from China’s domestic industry represented by the Jiangsu Semiconductor Industry Association (Jiāngsū Shěnduàntǐ Hángyè Xiéhuì 江苏省半导体行业协会).

Below is a clear, data-driven breakdown for investors, founders, techies, and marketers tracking China–U.S. semiconductor dynamics.

What MOFCOM said and why it matters

MOFCOM said the probe complies with Chinese law and World Trade Organization rules.

Applicants provided preliminary evidence showing imports of the targeted products rose by 37% between 2022 and 2024 while import prices fell by 52%.

That combination is cited as having suppressed domestic selling prices and harmed Chinese manufacturers’ operations.

Who’s named in the complaint

The application identifies four U.S. suppliers: Texas Instruments (TI, Dézhōu Yíqì 德州仪器), Analog Devices (ADI), Broadcom (Bótōng 博通), and onsemi (Ānsēnměi 安森美 / ON Semiconductor).

The association claims dumping margins exceeding 300% during the investigation period.

The filing also says U.S.-origin products accounted for an average 41% of the Chinese market for these parts over the period examined.

Import volumes: clear growth (2022–2024)

• 2022: 1.159 billion units.
• 2023: 1.299 billion units (up 12.07% year-on-year).
• 2024: 1.590 billion units (up 22.36% year-on-year).

The filings report a cumulative increase of roughly 37.13% between 2022 and 2024.

U.S.-origin chips rose from 47.81% of comparable imports in 2022 to 62.14% in 2024, averaging 54.34% over the three-year span.

Price moves: aggressive undercutting

The association documented steep unit-price declines for both product groups during 2022–2024.

• General interface chips: ¥3.00 RMB ($0.42 USD) in 2022 → ¥2.04 RMB ($0.28 USD) in 2023 → ¥1.55 RMB ($0.22 USD) in 2024.
• Gate-driver chips: ¥3.99 RMB ($0.55 USD) in 2022 → ¥2.53 RMB ($0.35 USD) in 2023 → ¥1.76 RMB ($0.24 USD) in 2024.

That represents cumulative declines of 48.33% and 55.85%, respectively, across the two categories.

Example product-level details include TI’s CAN-interface chip TCAN1043DRQ1, which reportedly fell from ¥2.10 RMB ($0.29 USD) in Q1 2022 to ¥1.13 RMB ($0.16 USD) in Q4 2024 — a drop of more than 46%.

TI’s gate-driver chips UCC21520QDWRQ1 and UCC27524AD were cited with cumulative drops of roughly 50% and 53%, respectively.

Domestic repercussions: passive price-following and margin compression

Chinese manufacturers cut prices too, but by less than imported prices.

• Domestic general interface chip prices fell 33.59% from 2022 to 2024.
• Domestic gate-driver chip prices fell 22.13% in the same period.

Because imports declined faster, domestic firms were forced into a “passive price-following” posture rather than proactive price competition.

The association estimates the domestic industry’s weighted average unit gross margin on domestic sales dropped 33.41% in 2024 versus 2023.

By category, unit gross margin declines were 38.76% for general interface chips and 22.68% for gate-driver chips.

Consequences reported in the filing include many firms swinging from profit to loss beginning in 2023, losses widening into 2024, a 17-percentage-point fall in capacity utilization relative to 2022, and a weakening ability to sustain R&D investment.

Industry groups and the fairness argument

The China Chamber of Commerce for Import & Export of Machinery and Electronic Products (China Machinery & Electronic Chamber, Zhōngguó Jīdàn Chǎnpǐn Jìnchūkǒu Shānghuì 中国机电产品进出口商会) backed the probe.

The chamber argued that recent U.S. export controls and extraterritorial measures have disrupted global supply chains and that trade remedies are a legal option under Chinese and WTO rules.

The China Semiconductor Industry Association (CSIA, Zhōngguó Bàndǎotǐ Hángyè Xiéhuì 中国半导体行业协会) also supported the investigation and called for fair competition and strengthened technology innovation.

What happens next: timeline and stakeholder participation

MOFCOM invited interested parties to register with the Trade Remedy Investigation Bureau within 20 days of the announcement to participate in the investigation.

Interested parties may submit written comments on product scope, applicant qualifications, investigated countries, and other matters within that 20-day window.

The investigation began on September 13, 2025, and the normal investigation period ends by September 13, 2026, though it can be extended up to six months.

MOFCOM emphasized it will follow legal procedures and make an evidence-based determination at the conclusion of the investigation.

Industry implications: short, medium, and long term

Short term: continued margin pressure on Chinese analog chipmakers and potential consolidation among weaker suppliers.

Medium term: MOFCOM could impose provisional or final anti-dumping duties if it finds dumping and injury, which may raise costs for downstream manufacturers that rely on these imports.

Long term: companies are likely to prioritize capacity planning, local supply-chain coordination, and R&D investment to reduce exposure to low-priced imports.

Industry groups are calling for a mix of legal trade remedies and industrial policies that promote technology upgrades and supply-chain resiliency.

Practical takeaways for different stakeholders

• Investors: Monitor MOFCOM filings and provisional duty announcements, and re-evaluate exposure to thin-margin analog suppliers in China.
• Founders and startup execs: Consider supply diversification and stronger supplier contracts that protect margins during price wars.
• Procurement and supply-chain teams: Map usage of affected analog parts and run scenario models that include potential duties or price rebounds.
• Product and engineering heads: Track migration risk if suppliers scale back R&D or capacity, and prioritize second-sourcing strategies for critical components.

Linking opportunities (anchor text suggestions for internal linking)

• MOFCOM anti-dumping rules — link to a company’s trade-compliance or policy page.
• Analog chip market share trends — link to previous market reports or blog posts on analog IC pricing.
• Supplier profiles: Texas Instruments (Dézhōu Yíqì 德州仪器), Analog Devices (ADI), Broadcom (Bótōng 博通), onsemi (Ānsēnměi 安森美 / ON Semiconductor) — link to supplier deep dives or procurement guides.
• Supply-chain resiliency — link to whitepapers on multi-sourcing and R&D investment strategies.

Quick data snapshot (for skimming)

• Import volume increase (2022→2024): ~37.13%.
• U.S. share of comparable imports (average 2022–2024): 54.34%.
• Reported import price fall (2022→2024): ~52%.
• Domestic weighted average unit gross margin drop in 2024 vs. 2023: 33.41%.

Note on currency conversions: RMB-to-USD conversions in this article use an illustrative rate of ¥7.20 RMB = $1.00 USD.

All RMB values are presented first, followed by the approximate USD conversion in parentheses: ¥amount RMB ($amount USD).

Bottom line: This MOFCOM probe is a clear market signal that U.S. chip giants cut prices have pressured Chinese analog makers — and the coming 12–18 months could reshape margins, sourcing strategies, and industry structure in China’s analog supply chain.

References

• U.S. chip giants halve prices in three years; Chinese firms forced into “passive price-following” – Yicai (第一财经 Dìyī Cáijīng)
• Anti-dumping investigation announcement / Ministry of Commerce – Ministry of Commerce (商务部 Shāngwùbù)
• Texas Instruments (Dézhōu Yíqì 德州仪器) – Texas Instruments