US poised to assess chip supply chains

The US Department of Commerce (DoC) announced a review of how local companies source semiconductors will be opened in January, with findings set to shape policy designed to bolster supply chains and cut risks deemed to be posed by China.

Its survey into the issue will cover both current generation and legacy chips, though the central aim is to “promote a level playing field for legacy chip production,” with the US authority citing concerns China was supporting local companies in boosting production.

The authority noted the chips being assessed support critical industries including telecoms, automotive and defence.

In a statement DoC secretary of commerce Gina Raimondo highlighted: “addressing non-market actions by foreign governments that threaten the US legacy chip supply chain is a matter of national security”.

“Over the last few years, we’ve seen potential signs of concerning practices from the PRC [People’s Republic of China] to expand their firms’ legacy chip production and make it harder for US companies to compete.”

She added the survey set to be conducted would help inform the next steps to build “strong, diverse, and resilient semiconductor supply chains.”

The US has regularly raised concerns about chips and technology being imported from China, and has taken various steps to bolster supply chains at home including the CHIPS and Science Act passed last year.

This is alongside imposing export restrictions on US companies selling some products to major vendors in China.