US Department of Commerce to review chip supply chain

The proposed inquest into how local companies source semiconductors will be opened in January. Its findings could shape the future of US supply chains and mitigate the risks deemed to be posed by China.

In a statement DoC secretary of commerce Gina Raimondo said the review would “address 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.”

The move is just the latest in an ongoing tussle between superpowers to gain control of their domestic semiconductor industries. The US passed its CHIPS and Science Act last year to restrict the power of companies to export chip components to China.

And just last week, Republican Marco Rubio urged the Biden administration to sanction Chinese company Brite, which had evaded restrictions despite having contracts with the Chinese military.