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In Compliance

US President Signs NDAA Introducing Prohibitions on Chinese Semiconductor Products in Government Contractor Supply Chains

by , and 8 Mins Read

On December 23, 2022, President Biden signed into law the National Defense Authorization Act for Fiscal Year 2023 (“FY2023 NDAA”). Section 5949 of FY2023 NDAA (“Section 5949”) would prohibit executive agencies from procuring or contracting with entities to obtain any electronic parts, products, or services that include covered semiconductor products or services from certain Chinese companies. The semiconductor prohibitions will not take effect until five years after the date of enactment, and the Federal Acquisition…

In Tax

United States: Giving tax credits where credit is due – Small chips causing big problems

by 11 Mins Read

In brief The semiconductor shortage is increasingly obvious, from the automotive industry to consumer electronics. In fact, the chip shortage has even been referenced as a potential matter of national security. H.R. 4346, better known as the CHIPs and Science Act (“Act”), was signed into law by President Biden on 9 August, 2022 and seeks to promote semiconductor supply chain resilience by establishing incentives to increase the production of microchips and related devices, including through…

In Forced Labor

US Court Dismissed Cobalt Mining Forced Labor Lawsuit Against Tech Companies

by and 5 Mins Read

Background on Lawsuit On November 2, the United States District Court for the District of Columbia dismissed the suit brought by a class of child laborers who mine cobalt in the Democratic Republic of Congo (“DRC”) against several US tech companies under the Trafficking Victims Protection Reauthorization Act (“TVPRA”) and several common law based causes of action. TVPRA allows victims of human trafficking and certain other crimes such as forced labor to bring civil claims…

In Technology

House Approves Supply Chain and Network Security Legislation – Part 2

by 5 Mins Read

On October 20, the House of Representatives passed five bills with overwhelming bipartisan support that aim to promote supply chain and network security. This post will focus on two bills directed towards the Federal Communications Commission (“FCC”). While these legislative measures are directed towards a U.S. government entity, and thus may not (on their face) appear applicable to corporate supply chains, if enacted, these bills could result in changes to laws, regulations, and policies down…

In Technology

House Approves Supply Chain and Network Security Legislation – Part 1

by 6 Mins Read

On October 20, the House of Representatives passed five bills with overwhelming bipartisan support that aim to promote supply chain and network security. This post will focus on one bill directed to the Department of Homeland Security (“DHS”), and two bills directed to the Department of Commerce (“DOC”). While these legislative measures are directed towards U.S. government entities, and thus may not (on their face) appear applicable to corporate supply chains, if enacted, these bills…

In Export Controls

Proposed European Chips Act

by and 2 Mins Read

On 19 October 2021, the EU Commission published its 2022 Work Programme (the “Programme“), which sets out the key goals that the EU Commission hopes to achieve in 2022. Chief amongst these is a desire to make “A Europe Fit for the Digital Age”, with a key proposal to achieve this being a possible “European Chips Act”. In the Programme, the EU Commission has stated that it will publish a proposal for a European Chips Act (the…

In Technology

FCC Proposes Further Restrictions on the Use of Chinese Telecom and Video Surveillance Equipment and Services

by , and 3 Mins Read

On August 19, 2021, the Federal Communications Commission (“FCC”) published a notice of proposed rulemaking (the “NPRM”) discussing potential changes it is considering making to its equipment authorization and competitive bidding programs to restrict the use of telecommunications and video surveillance equipment and services produced or provided by five Chinese companies. Those changes could further narrow the availability and use of such equipment in the United States, and restrict companies that accept financing from two…

In Compliance

Industry Groups Continue to Criticize Commerce Department’s Proposed Supply Chain Regulations and Licensing Procedure

by and 7 Mins Read

On January 19, 2021, the US Commerce Department (“Commerce”) published an interim final rule (“Interim Rule”) to implement Executive Order 13873, “Securing the Information and Communications Technology and Services (“ICTS”) Supply Chain.” The Interim Rule was issued following the public comment period’s closure on January 10, 2021 on the proposed rules issued on November 27, 2019 (“Proposed Rules”). For more information on the Proposed Rules and the Interim Rule, please see our blog posts here and here. When it requested comments on…

In Customs

EU Aims to Address Strategic Dependencies

by 1 Min Read

As part of Europe’s economic recovery, the EU Commission has acknowledged the trading bloc’s technological and strategic dependencies will need to be addressed. The EU Commission identified a number products imported into the EU on which the EU is highly dependent in notably sensitive sectors. The EU Commission also performed six in-depth reviews on the origin of strategic dependencies and their impact on importation. The EU Commission concluded that it will continue to work on…

In Technology

Biden Administration Takes Additional Steps towards Identifying Vulnerabilities in Semiconductor Supply Chains

by and 4 Mins Read

The Biden Administration has taken some initial steps towards identifying vulnerabilities in the semiconductor manufacturing and advanced packaging supply chain, which was one of the four critical supply chains addressed in President Biden’s February 24, 2021 Executive Order on “America’s Supply Chains” (“the Supply Chain EO”). As detailed in our March 2, 2021 blog post, the Supply Chain EO requires relevant government agencies in these four critical areas to submit a report within 100 days…

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