AT A GLANCE
- National Security Review: The US plans to review the procurement of Chinese semiconductors to mitigate national security risks.
- Focus on Legacy Chips: The assessment, starting in January, targets legacy chips crucial in telecom, automotive, and defense industries.
- Concerns Over PRC Practices: Commerce Secretary Raimondo highlights worrisome practices by the People’s Republic of China in legacy chip production.
- Strategic Industry Impact: Legacy semiconductors are essential in telecommunications, automotive, and defense, prompting the need for a supply chain assessment.
- Data Collection from US Companies: The Department of Commerce will gather information on US firms’ reliance on Chinese-manufactured chips to guide future strategies.
- Bipartisan Committee’s Recommendation: The House Select Committee urges import duties on Chinese legacy semiconductors, emphasizing the urgency to counter PRC dominance.
- Call for Aggressive Approach: The committee urges a robust stance against China in the semiconductor sector to prevent excessive PRC influence over the global economy.
The United States announced on Thursday that it will undertake a comprehensive review of the procurement of Chinese-made semiconductors, aiming to mitigate potential national security risks associated with China.
Focus on Legacy Chips in National Security Assessment
The Department of Commerce revealed that the review, scheduled to commence in January, will concentrate on legacy chips. These are semiconductors that may not be cutting-edge but remain crucial in various industries, including telecommunications, automotive, and defense.
Commerce Secretary Gina Raimondo expressed concern over perceived practices by the People’s Republic of China (PRC) to expand legacy chip production, making it challenging for U.S. companies to compete.
Importance of Legacy Semiconductors in Key Industries
Raimondo highlighted the significance of these semiconductors in industries vital to the U.S., emphasizing their role in telecommunications, automotive manufacturing, and the defense industrial base.
To address these concerns, the Department of Commerce plans to assess the U.S. semiconductor supply chain by gathering data from American companies. The goal is to understand their dependence on chips manufactured in China.
Strengthening Semiconductor Supply Chains
The collected information will serve as a foundation for future actions to build robust, diverse, and resilient semiconductor supply chains, according to Raimondo. The initiative aims to reduce the nation’s reliance on Chinese-made semiconductors and enhance the overall security of the semiconductor supply chain.
In a recent report, the bipartisan House Select Committee on the Chinese Communist Party emphasized the urgency of the situation. The committee urged the Commerce Department to impose import duties on legacy semiconductors from China, emphasizing the need for decisive action to prevent excessive Chinese influence over global economic dynamics. The committee called for a more assertive approach in handling competition with China.
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Source(s): SCMP
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