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The Information Technology Industry Council supports a FAR Council proposed rule aimed at prohibiting U.S. agencies from procuring products using semiconductors from foreign adversaries, as outlined in the fiscal 2023 NDAA. Effective December 23, 2027, the rule mandates contractors to certify compliance in their offerings, which include semiconductors from companies like SMIC, CXMT, and YMTC.

The proposal, open for public comment until April 20, 2026, requires contractors to conduct thorough inquiries into their supply chains. It establishes no exceptions for acquisitions below the Simplified Acquisition Threshold and emphasizes the importance of supply chain security in U.S. national security.