[Federal Register Volume 86, Number 48 (Monday, March 15, 2021)]
[Notices]
[Pages 14308-14309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05353]



[[Page 14308]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 210310-0052]
RIN 0694-XC073


Risks in the Semiconductor Manufacturing and Advanced Packaging 
Supply Chain

AGENCY: Bureau of Industry and Security, Office of Technology 
Evaluation, U.S. Department of Commerce.

ACTION: Notice of request for public comments.

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SUMMARY: On February 24, 2021, President Biden issued an Executive 
order on ``America's Supply Chains,'' which directs several Federal 
agency actions to secure and strengthen America's supply chains. One of 
these directions is for the Secretary of Commerce (the Secretary) to 
submit, within 100 days, a report to the President identifying risks in 
the semiconductor manufacturing and advanced packaging supply chains, 
and proposing policy recommendations to address these risks. 
Additionally, the National Defense Authorization Act of 2021 (FY21 
NDAA) includes a title for, ``Creating Helpful Incentives to Produce 
Semiconductors for America'' that mandates several Federal actions in 
securing the semiconductor-related supply chain. One of these 
requirements is for the Secretary to assess the capabilities of the 
U.S. microelectronics industrial base to support the national defense, 
in light of the global nature and interdependence of the supply chain 
with respect to manufacture, design, and end use. This notice requests 
comments and information from the public to assist the Department of 
Commerce (Commerce) in preparing the report required by the Executive 
order. After that report is completed, Commerce will assess whether 
additional information will be needed to conduct the assessment 
required by the FY21 NDAA.

DATES: The due date for filing comments is April 5 2021.

ADDRESSES: Submissions: All written comments in response to this notice 
must be addressed to Semiconductor Manufacturing Supply Chain filed 
through the Federal eRulemaking Portal: http://www.regulations.gov. To 
submit comments via http://www.regulations.gov, enter docket number 
BIS-2021-0011 on the home page and click ``search.'' The site will 
provide a search results page listing all documents associated with 
this docket. Find a reference to this notice and click on the link 
entitled ``Comment Now!'' (For further information on using http://www.regulations.gov, please consult the resources provided on the 
website by clicking on ``How to Use This Site.'')

FOR FURTHER INFORMATION CONTACT: David Boylan, Defense Industrial Base 
Division, Office of Technology Evaluation, Bureau of Industry and 
Security, at 202-734-9652, [email protected], or 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    On February 24, 2021, President Biden issued Executive Order 14017, 
``America's Supply Chains'' (86 FR 11849) (E.O. 14017). E.O. 14017 
focuses on the need for resilient, diverse, and secure supply chains to 
ensure U.S. economic prosperity and national security. Such supply 
chains are needed to address conditions that can reduce critical 
manufacturing capacity and the availability and integrity of critical 
goods, products, and services. In relevant part, E.O. 14017 directs 
that within 100 days, the Secretary shall submit a report to the 
President, through the Assistant to the President for National Security 
Affairs (APNSA) and the Assistant to the President for Economic Policy 
(APEP), identifying the risks in the semiconductor manufacturing and 
advanced packaging supply chains and policy recommendations to address 
these risks.
    Additionally, Title XCIX of the National Defense Authorization Act 
of 2021 (FY21 NDAA), ``Creating Helpful Incentives to Produce 
Semiconductors for America,'' mandates several Federal actions to 
secure the security of the semiconductor-related supply chain. Section 
9904 of the FY21 NDAA (``Department of Commerce Study on Status of 
Microelectronics Technologies in the United States'') requires the 
Secretary to assess the capabilities of the U.S. microelectronics 
industrial base to support the national defense, in light of the global 
nature and interdependence of the supply chain with respect to 
manufacture, design, and end use. The Secretary must submit a report to 
Congress that includes a list of critical technology areas impacted by 
potential disruptions in the production of microelectronics and an 
assessment of gaps and vulnerabilities in the microelectronics supply 
chain.
    This notice requests comments and information from the public to 
assist Commerce in preparing the report required by Executive Order 
14017. In developing this report, the Secretary will consult with the 
heads of appropriate agencies, and will be advised by all relevant 
bureaus and components of the Department of Commerce, including, but 
not limited to the Bureau of Industry and Security and the 
International Trade Administration. After that report is completed, 
Commerce will assess whether additional information will be needed to 
conduct the assessment required by Section 9904 of the FY21 NDAA.

Written Comments

    The Department is particularly interested in comments and 
information directed to the policy objectives listed in E.O. 14017 as 
they affect the U.S. semiconductor manufacturing and advanced packaging 
supply chains, including but not limited to the following elements:
    (i) Critical and essential goods and materials underlying the 
semiconductor manufacturing and advanced packaging supply chain;
    (ii) manufacturing and other capabilities necessary to produce 
semiconductors, including electronic design automation software and 
advanced integrated circuit packaging techniques and capabilities;
    (iii) the availability of the key skill sets and personnel 
necessary to sustain a competitive U.S. semiconductor ecosystem, 
including the domestic education and manufacturing workforce skills 
needed for semiconductor manufacturing; the skills gaps therein, and 
any opportunities to meet future workforce needs;
    (iv) risks or contingencies that may disrupt the semiconductor 
supply chain (including defense, intelligence, cyber, homeland 
security, health, climate, environmental, natural, market, economic, 
geopolitical, human-rights or forced labor risks):
    a. Risks posed by reliance on digital products that may be 
vulnerable to failures or exploitation;
    b. risks resulting from lack of or failure to develop domestic 
manufacturing capabilities, including emerging capabilities;
    (v) the resilience and capacity of the semiconductor supply chain 
to support national and economic security and emergency preparedness, 
including:
    a. Manufacturing or other needed capacities (including ability to 
modernize to meet future needs);
    b. gaps in manufacturing capabilities, including nonexistent, 
threatened, or single-point-of-failure capabilities, or single or dual 
suppliers;
    c. location of key manufacturing and production assets, and risks 
posed by these assets' physical location;

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    d. exclusive or dominant supply of critical or essential goods and 
materials by or through nations that are, or may become, unfriendly or 
unstable;
    e. availability of substitutes or alternative sources for critical 
or essential goods and materials;
    f. need for research and development capacity to sustain leadership 
in the development of goods and materials critical or essential to 
semiconductor manufacturing;
    g. current domestic education and manufacturing workforce skills 
and any identified gaps, opportunities and potential best practices;
    h. role of transportation systems in supporting the semiconductor 
supply chain and risks associated with these transportation systems;
    i. risks posed by climate change to the availability, production, 
or transportation of goods and materials critical to semiconductor 
manufacturing.
    (vi) Potential impact of the failure to sustain or develop elements 
of the semiconductor supply chain in the United States on other key 
downstream capabilities, including but not limited to food resources, 
energy grids, public utilities, information communications technology 
(ICT), aerospace applications, artificial intelligence applications, 5G 
infrastructure, quantum computing, supercomputer development, and 
election security. Also, the potential impact of purchases of semi-
conductor finished products by downstream customers, including volume 
and price, product generation and alternate inputs.
    (vii) Policy recommendations or suggested executive, legislative, 
regulatory changes, or actions to ensure a resilient supply chain for 
semiconductors (e.g., reshoring, nearshoring, or developing domestic 
suppliers, cooperation with allies to identify or develop alternative 
supply chains, building redundancy into supply chains, ways to address 
risks due to vulnerabilities in digital products or climate change).
    (viii) Any additional comments relevant to the assessment of the 
semiconductor manufacturing and advanced packing supply chains required 
by E.O. 14017.
    Commerce encourages commenters, when addressing the elements above, 
to structure their comments using the same text as identifiers for the 
areas of inquiry to which their comments respond to assist Commerce in 
more easily reviewing and summarizing the comments received in response 
to these specific comment areas. For example, a commenter submitting 
comments responsive to (i) critical and essential goods and materials 
underlying the semiconductor supply chain, would use that same text as 
a heading in the public comment followed by the commenter's specific 
comments in this area.

Requirements for Written Comments

    The http://www.regulations.gov website allows users to provide 
comments by filling in a ``Type Comment'' field, or by attaching a 
document using an ``Upload File'' field. The Department prefers that 
comments be provided in an attached document. The Department prefers 
submissions in Microsoft Word (.doc files) or Adobe Acrobat (.pdf 
files). If the submission is in an application format other than 
Microsoft Word or Adobe Acrobat, please indicate the name of the 
application in the ``Type Comment'' field. Please do not attach 
separate cover letters to electronic submissions; rather, include any 
information that might appear in a cover letter within the comments. 
Similarly, to the extent possible, please include any exhibits, 
annexes, or other attachments in the same file, so that the submission 
consists of one file instead of multiple files. Comments (both public 
comments and non-confidential versions of comments containing business 
confidential information) will be placed in the docket and open to 
public inspection. Comments may be viewed on http://www.regulations.gov 
by entering docket number BIS-2021-0011 in the search field on the home 
page.
    All filers should name their files using the name of the person or 
entity submitting the comments. Anonymous comments are also accepted. 
Communications from agencies of the United States Government will not 
be made available for public inspection.
    Anyone submitting business confidential information should clearly 
identify the business confidential portion at the time of submission, 
file a statement justifying nondisclosure and referring to the specific 
legal authority claimed, and provide a non-confidential version of the 
submission. The non-confidential version of the submission will be 
placed in the public file on http://www.regulations.gov. For comments 
submitted electronically containing business confidential information, 
the file name of the business confidential version should begin with 
the characters ``BC''. Any page containing business confidential 
information must be clearly marked ``BUSINESS CONFIDENTIAL'' on the top 
of that page. The non-confidential version must be clearly marked 
``PUBLIC''. The file name of the non-confidential version should begin 
with the character ``P''. The ``BC'' and ``P'' should be followed by 
the name of the person or entity submitting the comments or rebuttal 
comments. If a public hearing is held in support of this assessment, a 
separate Federal Register notice will be published providing the date 
and information about the hearing.
    The Bureau of Industry and Security does not maintain a separate 
public inspection facility. Requesters should first view the Bureau's 
web page, which can be found at https://efoia.bis.doc.gov/ (see 
``Electronic FOIA'' heading). If requesters cannot access the website, 
they may call 202-482-0795 for assistance. The records related to this 
assessment are made accessible in accordance with the regulations 
published in part 4 of title 15 of the Code of Federal Regulations (15 
CFR 4.1 through 4.11).

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-05353 Filed 3-11-21; 2:00 pm]
BILLING CODE 3510-33-P