The United States is poised to intensify its constraints on the procurement of Chinese semiconductor products. As reported by the legal information platform Lexology, on February 17, the U.S. Federal Acquisition Regulatory Council (FAR Council) released a Notice of Proposed Rulemaking. This notice suggests a ban on federal administrative agencies from purchasing or acquiring electronic products and services that incorporate semiconductors designed or manufactured by specific entities, namely SMIC, ChangXin Memory Technologies, and Yangtze Memory Technologies. The ban also extends to products from entities owned or controlled by the governments of 'foreign countries of concern,' including North Korea, China, Russia, and Iran. Moreover, the utilization of electronic products containing such semiconductors within critical systems is also forbidden. The rule is slated to come into effect on December 23, 2027, and remains subject to finalization. The public has until April 20, 2026, to submit their comments.
