According to a document to be published in the Federal Register on April 16, 2025, the US Department of Commerce has formally initiated an investigation into the national security implications of semiconductor and semiconductor manufacturing equipment (SME) imports. The investigation, led by the Department's Bureau of Industry and Security (BIS), falls under Section 232 of the Trade Expansion Act of 1962, which empowers the Secretary of Commerce to assess whether specific imports pose a threat to national security.
Scope of investigation
The probe will evaluate a broad range of semiconductor-related products, including substrates, bare wafers, legacy and advanced-node chips, microelectronics, and SME components. It also includes downstream products that incorporate semiconductors that are vital to the electronics supply chain. The investigation aims to determine whether current levels of import reliance compromise domestic industry resilience, especially considering potential foreign export restrictions, unfair trade practices, and capacity limitations.
Public input requested
As part of the investigation, the Department is seeking public input. The deadline for submissions is 21 days after the publication date of the notice in the Federal Register.
The Department is particularly interested in receiving information related to current and projected demand for semiconductors and chipmaking equipment in the US, the capacity of domestic manufacturing to meet that demand across various node sizes and product types; the impact of foreign subsidies and predatory trade practices; and the feasibility of scaling domestic production to reduce reliance on imports. Stakeholders are also encouraged to comment on export control risks, workforce capability gaps, and the role of US trade policy in safeguarding the sector.
Submission guidelines
Submissions containing business confidential information must follow specific formatting and labeling instructions to protect sensitive content. Commenters are encouraged to provide both confidential and public versions of their responses to ensure compliance with disclosure rules.
This move comes as the US intensifies efforts to strengthen its domestic semiconductor industry amid global supply chain disruptions and rising geopolitical tensions. Semiconductors and the tools used to manufacture them have become increasingly central to national security, economic competitiveness, and technological innovation.
Article edited by Jerry Chen
