Uncle Sam Wants Your Ideas on Buying American Computer Chips
Published Date: 1/15/2025
Notice
Summary
The government wants your ideas on how to boost making computer chips right here in the U.S. They’re looking to buy more tech products with American-made semiconductors to keep supply chains strong and create jobs. If you have thoughts, send them in by March 17, 2025, to help shape future rules and investments.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 1 costs, 3 mixed.
Competitions Limiting Awards to Domestic-Chip Users
OMB asks about agency competitions that are limited to offerors who use only domestically manufactured semiconductors or other requirements that ensure at least some U.S.-made chips are used. Such rules could create new market opportunities for U.S. chip makers but may require bidders to change supply chains to stay eligible for federal work.
Large Federal Market Opportunity for Domestic Chips
The notice notes that last year the Federal Government purchased about $10 billion in IT hardware (including about 1.5 million mobile devices and 1.3 million laptops), about $14 billion in cloud computing, and $5.43 billion in telecom services. That scale represents a significant potential market for domestically fabricated semiconductors if procurement favors U.S.-made chips.
Potential Ban on Foreign-Made Chips
The notice says there could be future rulemaking to prohibit Federal agencies from procuring semiconductors manufactured in certain countries. If that happens, companies that now buy chips from those countries may need to change suppliers or stop bidding on some Federal contracts.
Dual Sourcing Contract Requirements
The RFI specifically asks about requiring contractors to use at least two suppliers for a component, with at least one supplier providing domestically manufactured semiconductors. That would push suppliers to add backup domestic sources to their supply chains.
Using Industrial Mobilization to Favor Domestic Supply
The notice highlights the industrial mobilization exception that can limit full and open competition for a time to award contracts to particular domestic sources to create or maintain domestic production capability. Agencies could temporarily restrict competition to grow U.S. manufacturing capacity.
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