The investigation will last up to 12 months and could pave the way for further tariffs under the incoming Trump administration.

The Biden administration announced on Monday a last-minute trade investigation into older Chinese-made "legacy" semiconductors that could heap more U.S. tariffs on chips from China that power everyday goods from autos to washing machines to telecoms gear.

The US Trade Representative’s office said it had launched an investigation into “China’s acts, policies and practices related to targeting of the semiconductor industry for dominance”. The probe would be conducted under Section 301 of the US Trade Act.