Nvidia Corp (NASDAQ:NVDA) stock is trading lower Friday as the U.S. Department of Commerce on Thursday shared plans to launch a new survey in January 2024 to analyze the U.S. semiconductor supply chain and national defense industrial base.
This survey aims to understand how U.S. companies source current-generation and mature-node semiconductors, also known as legacy chips.
The results will guide U.S. policy to strengthen the semiconductor supply chain and address security risks associated with the People’s Republic of China (PRC).
Nvidia is already battling repercussions associated with the U.S. semiconductor and artificial intelligence technology embargo on China, a major market for the AI kingpin.
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Secretary Gina Raimondo highlighted the importance of legacy chips for critical U.S. industries like telecommunications, automotive, and defense. She expressed concerns over the PRC’s actions that potentially threaten the U.S. legacy chip supply chain, deeming it a national security issue. The Commerce Department’s proactive measures include gathering data from U.S. companies on their legacy chip sourcing, emphasizing the need for industry collaboration to build a robust supply chain.
The Bureau of Industry and Security (BIS) within the Commerce Department will conduct the survey, focusing on using and sourcing PRC-manufactured legacy chips in critical U.S. industries’ supply chains.
This initiative is in response to a Congressionally-mandated report, prepared under Section 9904 of the National Defense Authorization Act (NDAA) for Fiscal Year 2021, assessing the U.S. microelectronics industrial base’s capabilities to support national defense.
The report recommends promoting a level playing field for semiconductor manufacturing in the U.S. through domestic fabrication support, export controls, and evaluating potential non-market behavior.
BIS completed the data collection in May 2023 and prepared the report and recommendations in collaboration with the CHIPS Program Office. U.S. companies, accounting for about half of global semiconductor revenue, face stiff competition, often backed by foreign government subsidies.
Price Actions: NVDA shares traded lower by 0.47% at $487.62 premarket on the last check Friday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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