Texas Instruments (TXN) and other non-mainland China chip makers for electric vehicles could lose market share in the $80 billion sector as Beijing pressures domestic EV manufacturers to use microchips produced at home, the Wall Street Journal reported Tuesday.
The report said that the use of homemade chips has risen to around 15% in China, citing industry sources.
The US launched an investigation last week into China's production of chips, alleging that Beijing used anticompetitive tools to achieve self-sufficiency, the report said.
China supports its chip makers through state funds including a $47 billion fund launched in May, and some companies are choosing to set up shop in China to retain market share.
"If the world wants to decouple, you can do China for China and non-China for non-China," the report quoted Texas Instruments Chief Executive Haviv Ilan as saying.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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