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US Commerce Review Semiconductor Supply Chain Silicon UK

US Commerce Dept to survey semiconductor supply chain in January 2024, as part of national security move amid growing China concerns.

The US Department of Commerce has announced a new review of the semiconductor supply chain, highlighting the ongoing geopolitical tensions and the critical importance of semiconductors.

In response to the chip shortage scare during the Covid-19 pandemic, the United States enacted the Chips and Science Act in 2022, aiming to boost American semiconductor manufacturing and research. This act has led to significant private investment in the semiconductor industry, including from major chip companies such as TSMC, Intel, Micron Technology, and Samsung Electronics.

President Biden has emphasized the national security implications of US chip production, and the US government has awarded grants to American companies to support semiconductor manufacturing.

Now, the US Department of Commerce will launch a new survey in January 2024 to examine the US semiconductor supply chain and national defense industrial base, with a focus on addressing national security concerns related to Chinese-sourced chips.

The survey aims to identify how US companies are sourcing current-generation and mature-node semiconductors, also known as legacy chips, which are essential for critical US industries. The goal is to promote a level playing field for legacy chip production and reduce national security risks posed by the People's Republic of China (PRC).

Secretary Gina Raimondo has stressed the importance of proactive measures to assess the US semiconductor supply chain and collect data from US companies on the sourcing of their legacy chips. The survey will provide the Department with the information needed to inform future steps in building strong, diverse, and resilient semiconductor supply chains.

Raimondo has also defended the department's export controls aimed at China, stating that they are intended to uphold the rule of law both domestically and internationally.

The survey, to be launched by the Bureau of Industry and Security within the US Commerce Department, will focus on the use and sourcing of PRC-manufactured legacy chips in the supply chains of critical US industries.

In conclusion, the US government's review of the semiconductor supply chain reflects the increasing importance of semiconductors in national security and the ongoing tensions surrounding chip production and sourcing. This survey represents a proactive effort to address potential national security risks and ensure the resilience and diversity of the US semiconductor supply chain.

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