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May 16, 2024 - National Security

Key Takeaways from the Federal Government’s Proposed Rule Banning Certain Chinese-Origin Semiconductor Technology

Earlier this month, the Federal Acquisition Regulatory Council (FAR Council) issued an advanced notice of proposed rulemaking (ANPR) to implement parts of Section 5949 of the National Defense Authorization Act (NDAA) for Fiscal Year 2023 designed to impose new restrictions on the sale and use of certain semiconductor technology. Once the relevant Federal Acquisition Regulation (FAR) clause is finalized, it will prohibit government contractors from selling to the U.S. government products and services that incorporate semiconductors produced, designed, or provided by specified Chinese companies and other companies that the U.S. Government considers to be national security threats.

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