The Biden Administration has released the first-ever Quadrennial Supply Chain Review, a detailed report assessing vulnerabilities in the United States’ critical supply chains. The review highlights the risks of foreign reliance on foundational semiconductors, key components used in industries such as defense, healthcare, and telecommunications.
“A resilient and secure supply of foundational semiconductors is critical to U.S. national and economic security,” the report states. These chips power essential sectors, including medical devices, critical infrastructure, and defense systems.
The review outlines recent steps to boost domestic chip production, including investments under the CHIPS and Science Act and tax incentives for manufacturers. Notable projects, such as Texas Instruments’ facilities in Texas and Utah and GlobalFoundries’ operations in Vermont and New York, are already underway to strengthen the supply chain for legacy chips.
The administration is launching a Section 301 investigation into China’s semiconductor trade practices to further protect American businesses. The investigation will examine “a broad range of the PRC’s non-market acts, policies, and practices with respect to the semiconductor sector,” particularly how they impact U.S. industries like defense, automotive, and telecommunications.
Reducing risks in federal procurement is also a major focus. The review highlights plans to prioritize secure, domestically manufactured semiconductors in government purchasing. It notes that federal agencies will work to “mitigate the risk posed by undue dependence on foreign manufacturing.”
International cooperation is another key component of the strategy. The administration aims to diversify semiconductor production and reduce reliance on China through the Indo-Pacific Economic Framework and partnerships with countries like Mexico, India, and Vietnam.