High Performance Microchip Supply - Under Secretary of Defense ...
High Performance Microchip Supply - Under Secretary of Defense ...
High Performance Microchip Supply - Under Secretary of Defense ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
FINDINGS ___________________________________________________________________<br />
A similar reexamination <strong>of</strong> integrated circuits manufacturing is<br />
needed to assure continued ability economically to design and<br />
produce custom parts at the leading technology edge. An industry<br />
need for the same service is also growing. Today, there is little<br />
commercial requirement for such capability, just as there was no<br />
requirement for the mini-mills until an economic collapse in the U.S.<br />
steel industry forced the issue. Lacking a business disaster, DOD’s<br />
need for custom microelectronics trusted sources is pressing, and<br />
therefore the burden <strong>of</strong> prompting development <strong>of</strong> this capability<br />
falls to DOD. The DOD does not own the complete burden for action<br />
(for instance ASIC manufacturers and the semiconductor<br />
manufacturing equipment industry must participate), but certainly<br />
the leadership burden must be borne by DOD.<br />
The tiered trusted foundry approach <strong>of</strong>fers a relatively short-term<br />
solution to trusted leading-edge custom circuit supply. In the long<br />
run, it is not a realistic approach to satisfying DOD and the<br />
commercial industry’s needs. New methods and equipment concepts<br />
must be found that make custom circuit fabrication economical.<br />
SEMICONDUCTOR MANUFACTURING EQUIPMENT EXPORT<br />
CONTROLS<br />
Dual-use technology exports that pose national security or foreign<br />
policy concern are regulated pursuant to the Export Administration<br />
Act <strong>of</strong> 1979. Advanced semiconductor manufacturing equipment<br />
and technology are regarded as sensitive, and export to China<br />
requires issuance <strong>of</strong> an export license by the Department <strong>of</strong><br />
Commerce (DOC). Applications for export licenses are reviewed by<br />
the DOC as well as the Department <strong>of</strong> <strong>Defense</strong> and the State<br />
Department. Decisions to grant or not grant a license are determined<br />
on a case-by-case basis. 28 Since the end <strong>of</strong> the cold war, U.S. export<br />
28. The Department <strong>of</strong> Commerce also has an export status called a "License Exception.” A<br />
License Exception, once granted to an semiconductor manufacturing equipment (SME)<br />
supplier allows that supplier to ship a specific class or model <strong>of</strong> SME covered by the<br />
license exception to a particular end user (e.g. SMIC in China) without having to ask for<br />
an individual license for each piece <strong>of</strong> equipment. The equipment is shipped without<br />
delay.<br />
42 _________________________________________________________ DSB TASK FORCE ON