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DOC RELEASES PROPOSED RULE FOR NATIONAL SECURITY GUARDRAILS SUPPORTED BY THE CHIPS AND SCIENCE ACT

share: Updated:2023-03-22 00:00:00

In order to advance the nation’s technological and national security, the U.S. Department of Commerce (DoC) released a proposed rule that outlines details and definitions for “national security guardrails” included in the CHIPS for America Incentives Program, funded by the CHIPS and Science Act. The guardrails will help ensure that technology and innovation funded by the CHIPS and Science Act is not used for malign purposes by adversarial countries against the United States or its allies and partners.

Among other objectives, the proposed rule will establish standards that will restrict advanced facility expansion in foreign countries of concern.

The DoC is seeking public comment on the Notice of Proposed Rulemaking and will accept comments until May 22, 2023. ANSI encourages relevant industry, partners and allies, and other interested parties to submit comments to inform the final rule to be published later this year. 

About the CHIPS and Science Act

Signed into law in August 2022, the CHIPS and Science Act is part of President Biden’s Investing in America agenda, aimed at boosting American semiconductor research, development, and production, with the ultimate goal of strengthening U.S. leadership in the technology sector. The Act has important provisions in support of standardization.

The DoC’s proposed rule offers additional details on national security measures applicable to the CHIPS for America Incentives Program included in the CHIPS and Science Act, limiting recipients of funding from investing in the expansion of semiconductor manufacturing in several foreign countries.

The proposed rule will: 

establish standards to restrict advanced facility expansion in foreign countries of concern;

limit the expansion of legacy facilities in foreign countries of concern;

classify semiconductors as critical to national security;

reinforce U.S. export controls; and

detail restrictions on joint research and technology licensing efforts with foreign entities of concern.

“The innovation and technology funded in the CHIPS Act is how we plan to expand the technological and national security advantages of America and our allies; these guardrails will help ensure we stay ahead of adversaries for decades to come,” said Secretary of Commerce Gina Raimondo. “CHIPS for America is fundamentally a national security initiative and these guardrails will help ensure malign actors do not have access to the cutting-edge technology that can be used against America and our allies. We will also continue coordinating with our allies and partners to ensure this program advances our shared goals, strengthens global supply chains, and enhances our collective security.”