Commerce Department Announces Industrial Base Survey of American Semiconductor Supply Chain

Commerce Department Announces Industrial Base Survey of American Semiconductor Supply Chain
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Thu, 12/21/2023 – 09:50

FOR IMMEDIATE RELEASE

Thursday, December 21, 2023

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Commerce takes action to bolster the U.S. semiconductor supply chain and protect U.S. national security 

Today, the U.S. Department of Commerce announced it will launch a new survey in January 2024 that will serve as a foundation for continued analysis of the capabilities and challenges of the broader U.S. semiconductor supply chain and national defense industrial base. The intent of the survey is to identify how U.S. companies are sourcing current-generation and mature-node semiconductors, also known as legacy chips. This analysis will inform U.S. policy to bolster the semiconductor supply chain, promote a level playing field for legacy chip production, and reduce national security risks posed by the People’s Republic of China (PRC).

“Legacy chips are essential to supporting critical U.S. industries, like telecommunications, automotive and the defense industrial base. Addressing non-market actions by foreign governments that threaten the U.S. legacy chip supply chain is a matter of national security,” said Secretary Gina Raimondo. “Over the last few years, we’ve seen potential signs of concerning practices from the PRC to expand their firms’ legacy chip production and make it harder for U.S. companies to compete. To get ahead of these concerns, the Department of Commerce is taking proactive measures to assess the U.S. semiconductor supply chain by collecting data from U.S. companies on the sourcing of their legacy chips. Government alone cannot create and sustain a robust supply chain – we need industry at the table. This survey will empower the Department with the data we need to inform our next steps in building strong, diverse, and resilient semiconductor supply chains.”

The Bureau of Industry and Security (BIS) within Commerce will launch the survey, which focuses on the use and sourcing of PRC-manufactured legacy chips in the supply chains of critical U.S. industries. The survey is a response to findings in a Congressionally-mandated report also released this week, which assesses the capabilities of the U.S. microelectronics industrial base to support U.S. national defense. That report was prepared pursuant to Section 9904 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021.

Companies headquartered in the U.S. account for approximately half of global semiconductor revenue but face intense competition supported by increasing subsidies from foreign governments. The 9904 report recommends that the United States promotes a level playing field for semiconductor manufacturing in the United States through support for domestic fabrication, assembly, test, and package capabilities, continued protection of U.S. technology through export controls, and further assessment of potential non-market behavior. BIS completed the data collection in May 2023 and developed the 9904 report and recommendations in coordination with the CHIPS Program Office. The full study directed under Section 9904 is available on BIS’s website.

Bureaus and Offices

Bureau of Industry and Security

Tags

Semiconductor Industry

Read the full report from the U.S. Department of Commerce: Read More