Commerce Department Launches Semiconductor Supply Chain Review to Gauge China Risk

Published on December 22, 2023

On Thursday, the U.S. Department of Commerce announced a semiconductor supply chain review to identify areas of dependence on China and reduce related national security risks. The Commerce Department already has export controls for advanced chips and chipmaking equipment; the review concerns legacy chips that the department defines as being produced with 28-nanometer technology or larger. These legacy chips are used in most cars, smartphones, refrigerators, televisions, washing machines, military systems, and medical devices. Disruptions in the supply of legacy chips may negatively impact U.S. manufacturers and the lives of American consumers. “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 Commerce Secretary Gina Raimondo in a press release....