Export Control and National Security Policy

The government should undertake a comprehensive evaluation of past semiconductor-focused technology restrictions to determine whether they have achieved their specific national security and foreign policy objectives, understand the collateral impact on the U.S. national security innovation base — including the degree to which U.S. semiconductor technologies are “designed out” globally and replaced by foreign alternatives — and assess whether other policy tools may be more effective.

Poorly calibrated and excessive regulations, developed without sufficient industry expertise, risk ceding strategic markets and weakening American semiconductor competitiveness globally. Government should work closely with industry to ensure controls are crafted in a manner that enhances our national security while still enabling the U.S. semiconductor industry to compete, grow, and innovate. The government should regularly consult with industry leaders through multiple channels, engaging with trade compliance practitioners as well as company leaders responsible for business strategy and technology roadmaps.

• Ease restrictions for trade with allies: Government should regularly pursue opportunities to streamline export control regulations and ease restrictions on export-controlled trade to trusted partners and allies to foster cooperative technological innovation, support security/defense partnerships, facilitate investments in each other’s markets, and expand the market base for Made-in-America chips.
• Avoid “design out” of U.S. chips: Avoid creating incentives for the development of new technologies outside the U.S., including by modernizing outdated controls.
• Provide appropriate time for compliance: Government should, where possible, allow for delayed implementation of regulations to give the private sector time to adjust and build the necessary compliance capabilities.