Commenters detailed how the chip shortage is creating problems for the tech industry, leading to longer lead times for obtaining network equipment, in response to an FCC public notice. Comments posted Friday in docket 21-195. Most didn’t seek specific action.
Supply Chain Disruptions Task Force leaders are Transportation Secretary Pete Buttigieg, Commerce Secretary Gina Raimondo and Agriculture Secretary Tom Vilsack; National Economic Council Deputy Director Sameera Fazili says of the group that it will "tackle near-term bottlenecks in the semiconductor" and other industries; President Joe Biden signed a February chip supply and related executive order (see our new report here).
Global semiconductor sales reached $41.8 billion in April, increasing 1.9% from March and 21.7% from April 2020, reported the Semiconductor Industry Association Wednesday. “Global demand for semiconductors remained high in April, as reflected by rising sales across a range of chip products and throughout each of the world’s major regional markets,” said SIA President John Neuffer. “The global chip market is projected to grow substantially in 2021 and 2022 as semiconductors become increasingly integral to the game-changing technologies of today and the future.” Year-over-year sales increased 25.7% in China, 24.3% in Asia Pacific, 20.1% in Europe, 17.6% in Japan and 14.3% in the Americas, said SIA.
President Joe Biden revoked former President Donald Trump’s bans on U.S. transactions with major Chinese apps. Biden replaced them Wednesday with an executive order directing the Commerce Department to evaluate “transactions involving” apps “that may pose an undue risk of sabotage or subversion of” U.S. information and communications technology. Last month, Biden revoked Trump’s social media order that sought an FCC rulemaking to clarify interpretation of Communications Decency Act Section 230 (see 2105140074).
The FCC is expected to approve 4-0 an NPRM next week proposing to bar certification of equipment from companies found to be a national security risk. No lobbying meetings were reported on the draft, per docket 21-232. FCC officials said CTA is starting to make the rounds among commissioner aides to discuss the item, which could lead to a few tweaks. Wednesday, Huawei executives criticized the proposal.
Holland & Knight hires Nick Leibham as partner, Public Policy & Regulation Practice Group; he's ex-K&L Gates, where he co-headed emerging technologies and innovation practice, federal marketplace; also joining H&K from the same firm is Kathleen Nicholas as senior public affairs adviser ... Seven Letter additions include Nu Wexler, ex-Facebook, Google and Twitter, as partner at the "strategic communications" firm ... Locomation trucking technology platform with "human-guided autonomous convoying" taps Sean Rushton, ex-National Highway Traffic Safety Administration, to lead corporate communications.
The global semiconductor shortage “continues to negatively impact U.S. workers and consumers and is a persistent headwind to the U.S. economic outlook,” said the 100-day supply chain review published Tuesday by the White House in answer to President Joe Biden’s call for the report in his Feb. 24 executive order. The Commerce Department’s assessment took center stage in the 250-page report. The Energy, Defense and Health and Human Services departments also weighed in.
The Senate achieved the necessary "yes" votes to pass the U.S. Innovation and Competition Act Tuesday, as expected (see 2106040063). The vote was 68-31, with voting continuing, at approximately 6:25 p.m. EDT. S-1260, previously known as the Endless Frontier Act, includes $52 billion for U.S. chipmaking and $1.5 billion to implement the Utilizing Strategic Allied Telecom Act. The semiconductor money includes $49.5 billion to implement the Creating Helpful Incentives to Produce Semiconductors for America Act (see 2105210056).
China will be capable of supplying at least 30% of its domestic semiconductor needs within 30 months through an organized industrial program of “self-reliance,” reported Strategy Analytics Monday. “This level of self reliance is considered the minimum needed to buffer against import supply disruptions,” said analyst Christopher Taylor. The trade war with the U.S. and global chip shortages are fueling China’s drive toward such “self-sufficiency” through targeted investments and incentives, especially in “higher-demand mature process nodes,” said SA.
The Senate plans to vote Tuesday on final passage of the Endless Frontier Act (see 2105270082) and several potential amendments, an aide for Senate Majority Leader Chuck Schumer, D-N.Y., told us Friday. The Senate could consider a manager’s amendment, which might open the door to a host of additional provisions, per an aide for co-sponsor Sen. Todd Young, R-Ind. Some 30 senators are attempting to attach provisions to the manager’s package, lobbyists said.