The Federal Acquisition Regulatory Council (FAR Council) proposed a new rule on Tuesday that would bar federal agencies from purchasing certain products and services that contain semiconductors tied to foreign adversaries.
In a posting to the Federal Register, the FAR Council said the rule would carry out provisions of the National Defense Authorization Act of 2023 (NDAA) that prohibit agencies from procuring, obtaining, extending, or renewing contracts for semiconductor products or services tied to countries including China, Russia, Iran, and North Korea.
If finalized, the prohibition would take effect Dec. 23, 2027, and would be codified in the Federal Acquisition Regulation (FAR) – the main rulebook for federal purchasing.
The proposed rule would prohibit agencies from procuring electronic products or services that include “covered” semiconductors, as well as from purchasing electronic products for use in critical systems that rely on electronics containing covered semiconductors.
Existing equipment bought before the Dec. 2027 date would not be removed or replaced, and lifecycle support for pre-2027 equipment would not be restricted.
The FAR Council said the action follows public feedback on an earlier notice and is intended to clarify and strengthen supply chain restrictions tied to national security risks.
“There are numerous opportunities for adversaries and other threat actors to introduce hardware backdoors, malicious firmware, and malicious software into a semiconductor during production,” the posting reads.
“Since semiconductors are key components of U.S. critical infrastructure … and have many military applications, it is vital that these threat vectors are addressed during the production process,” the post continued.
The proposed rule builds on broader federal efforts to secure technology and supply chains. Recent legislation would deny tax incentives to companies that use technology controlled by foreign adversaries, and require the Commerce Department to assess risks posed by foreign-controlled technologies to the electric grid.
The FAR Council’s proposal opens a formal rulemaking process, during which the public will have the opportunity to submit comments before a final rule is issued. Those responses are due by April 20, according to the posting.