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Proposed Rule to Implement Prohibition on Certain Semiconductor Products & Services

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Proposed Rule to Implement Prohibition on Certain Semiconductor Products & Services
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The Department of Defense, NASA and the General Services Administration have proposed a rule that would prohibit executive agencies from buying certain electronic goods and services that include covered semiconductor products and services.

According to a notice published Friday in the Federal Register, the proposed rule seeks to amend the Federal Acquisition Regulation to implement a section of the fiscal year 2023 National Defense Authorization Act.

The prohibition will take effect on Dec. 23, 2027.

Covered semiconductors include those from entities that are either owned or controlled by foreign governments of concern, including China, Russia, Iran and North Korea.

DOD, NASA and GSA plan to require all solicitations to include a provision directing vendors to certify their non-use of covered chips in electronic products or services provided to the government.

The three agencies are asking the public for insights on proposed definitions in the rule, potential impact of the rule on small businesses and suggested procedures for conducting a reasonable inquiry into supply chains to detect the use or inclusion of covered semiconductor products and services, among others.

Comments on the proposed rule are due July 2.