The House passed the FY 2022 National Defense Authorization Act (HR-4350) Thursday 316-113, after okaying telecom and tech-related amendments. The chamber approved 360-66 an en bloc amendment containing language from Rep. Tim Walberg, R-Mich., to attach his Promoting U.S. Wireless Leadership Act (HR-3003). Lawmakers voted 362-59 for another amendments package that includes text from Rep. Tom Malinowski, D-N.J., to prohibit agencies requiring tech companies to add backdoors. It approved 367-59 a package including a proposal from Rep. Debbie Lesko, R-Ariz., for a report on the feasibility of an interagency U.S.-Taiwan working group to cooperate on chips. An earlier House-cleared amendments package included the text of the 911 Supporting Accurate Views of Emergency Services Act (HR-2351) and requires the State Department to report to Congress on the “national security implications” of open radio access networks (see 2109220069). Senate Armed Services Committee leaders last week filed their FY 2022 NDAA version (S-2792); the panel advanced the measure in July.
Semiconductors are “a hot topic these days,” said Intel CEO Pat Gelsinger at the groundbreaking ceremony Friday of two new fabs Intel is building in Chandler, Arizona -- a site he dubbed the “Silicon Desert.” The industry is enduring a demand-supply gap, and the global shortage “is causing chips to halt and slow production of many other areas of the economy,” he said.
Comments are due Nov. 8 at the Commerce Department's Bureau of Industry and Security in docket BIS-2021-0036 to help the secretaries of Commerce and Homeland Security prepare a report to the White House on the global semiconductor shortage by the one-year deadline of President Joe Biden’s Feb. 24 executive order on America's supply chains, says Friday’s Federal Register. BIS put out a separate call for comments this week due Nov. 4 on supply chain disruptions in the broader information and communications technology sector, also under the Feb. 24 EO (see 2109170042).
The House approved on a voice vote Wednesday an en bloc amendment to the FY 2022 National Defense Authorization Act (HR-4350) that includes the 911 Supporting Accurate Views of Emergency Services Act (see 2109210083). HR-2351 would change classification of public safety call-takers and dispatchers to "protective service.” Rep. Norma Torres, D-Calif., sought to attach HR-2351’s text to HR-4350. The en bloc amendment also included a proposal from Rep. Abigail Spanberger, D-Va., to require the State Department to report to Congress on the “national security implications” of open radio access networks. An en bloc amendment up for House consideration includes language from Rep. Tim Walberg, R-Mich., to attach his Promoting U.S. Wireless Leadership Act (HR-3003). Another amendments package includes text from Rep. Tom Malinowski, D-N.J., to prohibit federal agencies from requiring or supporting tech companies’ efforts to add back doors or other security vulnerabilities. Rep. Debbie Lesko, R-Ariz., will get a vote on her proposal for a report on feasibility of an interagency U.S.-Taiwan working group to cooperate on chip supply issues.
Congress should “raise or suspend” the debt limit as it has done about 80 times since 1960 “and protect the full faith and credit” of the U.S., five tech associations wrote the House and Senate leadership Monday. Defaulting on the government’s obligations “could undermine the U.S. dollar’s role as the world’s reserve currency, spark an economic downturn, increase future deficits, and threaten the status of Treasury bonds as the world’s safest asset,” said the Information Technology Industry Council, Internet Association, Semi, Semiconductor Industry Association and TechNet: “Even the threat of default could cause a further downgrade in the U.S. credit rating, which would not only imperil the fragile economic recovery, but raise debt costs for millions of businesses and consumers.”
The semiconductor shortage shows major supply chain disruptions “don’t have quick fixes,” reported Bain & Co. Monday. The chips crunch is “unlikely to be the last tech supply chain disruption that affects multiple industries, as more products across sectors rely on components that share the same manufacturing capacity,” the consultant said. The “breadth and depth” of this shortage’s impact on the tech industry and the global economy is unprecedented, but “the reality is we’re going to see more of these disruptive events,” said the report: The shortage’s “hard lessons” show that “navigating future disruptions calls for a more holistic and proactive strategy, one that requires closer collaboration between suppliers and their customers.”
The 5G opportunity could create up to 300,000 green jobs by 2030, justifying “accelerated deployment” of such networks and use cases, plus “enhanced investments in 5G technology leadership and a robust global semiconductor ecosystem,” reported Qualcomm Monday. Widespread commercial deployment could enable reduction of 374 million metric tons of U.S. greenhouse gas emissions -- equivalent to removing 81 million passenger vehicles from U.S. roads for a year, it said. Qualcomm estimates 5G can help halve U.S. pesticide use through the deployment of drones “for remote sensing and spray application.” The chipmaker is working with partners “across many industries to leverage 5G to reduce carbon footprints and conserve resources,” said CEO Cristiano Amon.
T-Mobile US names Mark Nelson from Cleary Gottlieb executive vice president-general counsel; current General Counsel Dave Miller retires, effective April 1 ... BGR Group promotes Justin Rzepka to co-chair, Commerce Practice, and Robin Colwell to senior vice president, now full time; the lobbying and public relations firm has broadband, semiconductor and other clients ... Ex-Intel Senior Counsel Norberto Salinas begins Salinas Strategies "government relations consultancy"; he has worked on patent policy, communications, IoT and AI issues.
Comments are due Nov. 4 at the Bureau of Industry and Security in docket BIS-2021-0021 to help the secretaries of Commerce and Homeland Security prepare a report to the White House on supply chain disruptions in the “critical sectors and subsectors” of the information and communications technology “industrial base” by the one-year deadline of President Joe Biden’s Feb. 24 executive order, says Monday’s Federal Register. The notice seeks information on the “needed capacities” of the U.S. for “ICT design and manufacturing of products and services, including the ability to modernize to meet future needs.” The agency wants the public to identify “gaps” in U.S. design and manufacturing capabilities, “including nonexistent, extinct, threatened, or single-point-of failure capabilities,” it says. Commerce and Homeland Security “are specifically interested in comments related to validation standards of component and software integrity, standards and practices ensuring the availability and integrity of software delivery and maintenance,” says the notice. They want to know what “security controls” are in place “during the manufacturing phase of ICT hardware and components.” The agencies seek “specific policy recommendations important for ensuring a resilient supply chain for the ICT industrial base.” The recommendations may include strategies for “sustainably reshoring supply chains," says the notice. It’s not the goal of U.S. chipmakers to “onshore everything,” Semiconductor Industry Association CEO John Neuffer told a Sept. 8 Center for Strategic and International Studies webinar (see 2109090001). “We’re trying to diversify our supply chains and spread out our risk.”
Lack of foundry capacity is hampering growth in an “exploding” IoT market, Silicon Labs President Matt Johnson told us Wednesday. The challenge to increase chipmaking capacity is exacerbated by the long lead times required for fabrication plants, Johnson said. Demand has been increasing and capacity hasn’t grown at the same pace, he said. “Assuming there’s not a macro shift in demand, we’re looking at least a couple of years here of demand-supply imbalance.” It's not just the pandemic: The volatile supply chain phenomenon is the result of several years of demand and supply imbalance, Johnson said. “It’s hard to order anything right now and have it not be delayed,” he said, calling the situation “painful” for semiconductor companies. Johnson becomes CEO when Tyson Tuttle steps down Jan. 1; see our report here.