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Semiconductors

US to gather chip supply chain intelligence to boost national security

  • The Department of Commerce will assess the reliance of US companies on chips manufactured in China
  • The assessment will be launched in January and will focus on legacy chips - semiconductors that are not cutting-edge but still key to industries

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The flags of China and the US displayed on a printed circuit board with semiconductor chips. Photo: Reuters / Florence Lo / Illustration
Agence France-Presse

The United States said on Thursday it would launch a review into how companies procure Chinese-made semiconductors, aiming to reduce national security risks posed by China.

The assessment will be launched in January and will focus on legacy chips - semiconductors that are not cutting-edge but still key to industries, said the Department of Commerce in a statement.

“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 US companies to compete,” said Commerce Secretary Gina Raimondo, referring to the People’s Republic of China.

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Such semiconductors are needed in industries such as telecommunications, the automotive sector and in the defence industrial base, she added.

With an eye on these concerns, the department will assess the US semiconductor supply chain by collecting data from American companies to gauge their reliance on chips manufactured in China.

This information will “inform our next steps in building strong, diverse, and resilient semiconductor supply chains”, Raimondo said.

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