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Home » Market Update » Ban on China takes US closer to onshoring microelectronics

Circuit boards produced by “adversarial” countries will be banned from use in US Department of Defense (DOD) mission systems from 2023, reports FCW (Federal Computer Week).

The $740 billion 2021 National Defense Authorization Act prohibits boards from China, Russia and any other ‘potentially adversarial’ country, with exceptions for COTS (commercial-off-the-shelf) products and services as well as some exemptions “to support national security”.

“The Trump administration has focused a lot on China and its national security risks when it comes to microelectronics, such as potentially siphoning sensitive data during the manufacturing process,” FCW reports. “And with growing competition with China and national security concerns heighted by the pandemic, congress and the Defense Department have pushed to tighten its cybersecurity and technical supply chains.”

Urgent reshoring of US semiconductor manufacturing has gained significant support in government. According to John Mitchell, president and CEO of the electronics association, IPC, “The pandemic was a big wake up call. Tariffs that started a couple of years ago got everybody to pay attention…but then the pandemic said, wow, my supply chain just got cut off and I can’t buy certain things.”

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