China is increasing production of so-called ‘mature’ chips using older technologies. “Given plans to introduce new production lines in China, an aggressive price war is inevitable,” the report said.

The U.S. government is considering a ban on the sale of Micron chips to China. The US government is also considering a possible ban on sales of semiconductors to the Chinese market. The Chinese government has said that it will not accept any restrictions on semiconductor sales to the United States.