U.S. semiconductor stocks Texas Instruments (NASDAQ:TXN) and Analog Devices (NASDAQ:ADI) came under pressure Monday as China escalated its regulatory offensive against the sector. Beijing launched fresh probes into American chipmakers and targeted Nvidia (NASDAQ:NVDA) with an antitrust ruling, setting a tense backdrop for ongoing U.S.-China trade talks in Madrid.
Texas Instruments and Analog Devices shares dropped after China’s Ministry of Commerce initiated anti-dumping and discrimination investigations into U.S. semiconductors targeting American-made analog integrated circuit (IC) chips.
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These new probes followed two earlier weekend actions—one alleging dumping of U.S. chips and another challenging Washington’s restrictions on China’s chip sector.
The timing of these moves adds further strain as U.S. Treasury Secretary Scott Bessent meets Chinese Vice Premier He Lifeng in Madrid for high-stakes discussions on trade, economic, and security issues. Washington blacklisted 23 Chinese companies last week, escalating the technology-driven trade war.
At the same time, Nvidia shares slipped after China’s State Administration for Market Regulation (SAMR) accused the U.S. chipmaker of violating anti-monopoly law. The regulator linked the allegations to Nvidia’s $6.9 billion acquisition of Israeli networking firm Mellanox, which China approved in 2020 with conditions.
The geopolitical tensions between Washington and Beijing continue to get murkier.
Washington has restricted sales of Nvidia’s most advanced AI chips on national security grounds, while Beijing has urged domestic companies to avoid Nvidia’s redesigned H20 accelerators.
Price Actions: TXN stock is down 3.16% to $176.83 premarket at the last check on Monday. ADI is down 2.55%.
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