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Home Government Technology

OMB Seeks Info on Domestic Chip Manufacture Procurement Approaches

by Jane Edwards
December 11, 2024
in Government Technology, News
OMB Seeks Info on Domestic Chip Manufacture Procurement Approaches

The Office of Management and Budget has started soliciting input on methods the federal government can implement to strengthen the resilience of domestic semiconductor manufacturing and maintain this capability through the acquisition of commercial IT end products, including chips produced in the U.S.

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  • Government Initiatives to Strengthen Domestic Chip Supply

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OMB said Tuesday that through the request for information, the current administration intends to understand how the federal acquisition system can best leverage domestic chip sources to ensure a secure supply chain for commercial IT products and services purchased by the U.S. government.

The agency is soliciting feedback on potential procurement approaches to mitigate supply chain disruption and increase chip production in the U.S.

The government seeks to determine ways to incentivize government contractors to scale up their use of semiconductors produced in the U.S.

According to the RFI, market segments of interest include telecommunication infrastructure and services, cloud and data center infrastructure and services, transportation and vehicles, and ICT devices such as mobile phones and laptops.

Questions for Stakeholders 

OMB is asking stakeholders how quickly they could start using domestically produced semiconductors given the existence of sufficient economic incentives and how much production is needed to constitute a sufficient domestic chip supply.

The RFI also includes questions pertaining to domestic supply chain vulnerabilities surrounding semiconductors, the anticipated timeline for domestic production, factors that cause significant delays in bringing domestic manufacturing facilities online and the types of innovations that could help improve the efficiency of the manufacturing market.

The agency also asked about actions the federal government should take to promote strong small business participation by resellers offering commercial IT with domestically produced semiconductors.

Government Initiatives to Strengthen Domestic Chip Supply

According to OMB, the RFI follows a series of measures the government has initiated to enable an essential supply of domestically fabricated semiconductors.

Such actions include the Department of Commerce’s CHIPS Incentives Program, the Department of Defense’s Microelectronics Commons initiative and the Tech Hubs program.

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