Notice2021-20348
Notice of Request for Public Comments on Risks in the Semiconductor Supply Chain
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 24, 2021
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
The Department of Commerce ("Department") (Bureau of Industry ("BIS")) led the 100-Day Supply Chain Review of semiconductors and advanced packaging that was mandated by Presidential Executive Order. On February 24, 2021, President Biden issued an Executive Order on "America's Supply Chains," which directs several federal agency actions to secure and strengthen America's supply chains. This review, included in the White House Report "Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth", identified numerous areas of supply chain vulnerabilities. The ongoing shortages in the semiconductor product supply chain are having an adverse impact on a wide range of industry sectors. With the goal of accelerating information flow across the various segments of the supply chain, identifying data gaps and bottlenecks in the supply chain, and potential inconsistent demand signals, the Department is seeking responses from interested parties (including domestic and foreign semiconductor design firms, semiconductor manufacturers, materials and equipment suppliers, as well as semiconductor intermediate and end-users) to the questions set forth in this notice.
Full Text
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<title>Federal Register, Volume 86 Issue 183 (Friday, September 24, 2021)</title>
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[Federal Register Volume 86, Number 183 (Friday, September 24, 2021)]
[Notices]
[Pages 53031-53033]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-20348]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Docket No. 210915-0189]
RIN 0694-XC084
Notice of Request for Public Comments on Risks in the
Semiconductor Supply Chain
AGENCY: Bureau of Industry and Security, Office of Technology
Evaluation, U.S. Department of Commerce.
ACTION: Notice of request for public comments.
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SUMMARY: The Department of Commerce (``Department'') (Bureau of
Industry (``BIS'')) led the 100-Day Supply Chain Review of
semiconductors and advanced packaging that was mandated by Presidential
Executive Order. On February 24, 2021, President Biden issued an
Executive Order on ``America's Supply Chains,'' which directs several
federal agency actions to secure and strengthen America's supply
chains. This review, included in the White House Report ``Building
Resilient Supply Chains, Revitalizing American Manufacturing, and
Fostering Broad-Based Growth'', identified numerous areas of supply
chain vulnerabilities. The ongoing shortages in the semiconductor
product supply chain are having an adverse impact on a wide range of
industry sectors. With the goal of accelerating information flow across
the various segments of the supply chain, identifying data gaps and
bottlenecks in the supply chain, and potential inconsistent demand
signals, the Department is seeking responses from interested parties
(including domestic and foreign semiconductor design firms,
semiconductor manufacturers, materials and equipment suppliers, as well
as semiconductor intermediate and end-users) to the questions set forth
in this notice.
DATES: The due date for filing comments is November 8, 2021.
ADDRESSES: Submissions: You may submit comments, identified by docket
number BIS 2021-0036 or RIN 0694-XC084, through the Federal eRulemaking
Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. To submit comments via <a href="https://www.regulations.gov">https://www.regulations.gov</a>, enter docket number BIS-2021-0036 on the home page
and click ``search.'' The site will provide a search results page
listing all documents associated with this docket. Find a reference to
this notice and click on the link entitled ``Comment Now!'' (For
further information on using <a href="https://www.regulations.gov">https://www.regulations.gov</a>, please
consult the resources provided on the website by clicking on ``How to
Use This Site.'') BIS requires commenters submitting comments via
<a href="https://www.regulations.gov">https://www.regulations.gov</a> to first download a fillable form from the
BIS website at <a href="https://bis.doc.gov/semiconductorFRN2021">https://bis.doc.gov/semiconductorFRN2021</a> and to then
submit the filled out electronic form in <a href="https://www.regulations.gov">https://www.regulations.gov</a>
when submitting comments in response to docket number BIS 2021-0036 or
RIN 0694-XC084.
FOR FURTHER INFORMATION CONTACT: David Boylan, Defense Industrial Base
Division, Office of Technology Evaluation, Bureau of Industry and
Security, at 202-482-7816, <a href="/cdn-cgi/l/email-protection#3665535b5f555958524355425944654243524f76545f451852595518515940"><span class="__cf_email__" data-cfemail="f7a4929a9e949899938294839885a48382938eb7959e84d9939894d9909881">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
BIS led the Department's 100 Day Supply Chain Review of
semiconductors and advanced packaging that was mandated by Presidential
Executive Order (E.O.) 14017. On February 24, 2021, President Biden
issued E.O. 14017 on ``America's Supply Chains,'' which directs several
federal agency actions to secure and strengthen America's supply
chains.
This review, included in the White House Report ``Building
Resilient Supply Chains, Revitalizing American Manufacturing, and
Fostering Broad-Based Growth'' (available at: <a href="https://www.whitehouse.gov/wp-content/uploads/2021/06/100-day-supply-chain-review-report.pdf">https://www.whitehouse.gov/wp-content/uploads/2021/06/100-day-supply-chain-review-report.pdf</a>) (last accessed September 3, 2021), identified
numerous areas of supply chain vulnerabilities. In addition to the
longer-term goals such as strengthening the domestic semiconductor
manufacturing ecosystem and promoting U.S. leadership, this report
called upon the Department to partner with industry to facilitate
information flow between semiconductor producers and suppliers and end-
users to address the current semiconductor shortage. The ongoing
shortage of semiconductor products is having an adverse impact on a
wide range of industry sectors.
With the goal of facilitating the flow of information across the
various segments of the supply chain, identifying data gaps and
bottlenecks in the supply chain, and potential inconsistent demand
signals, the Department is seeking responses from interested parties
(including domestic and foreign semiconductor design firms,
semiconductor and microelectronics manufacturers, materials and
equipment suppliers, as well as semiconductor
[[Page 53032]]
product intermediate and end-users) to the questions set forth in this
notice.
Information submitted in response to this request may contain
business proprietary information, which will not be published and will
be protected from disclosure, provided the submitters follow the
instructions below for submitting confidential business information in
the public comments.
Written Comments
Interested parties are invited to submit written comments, data,
analyses, or information pertinent to this request to BIS's Office of
Technology Evaluation no later than November 8, 2021.
While the Department invites input from all interested parties, it
is particularly interested in obtaining information from foreign and
domestic entities that actively participate in the semiconductor
product supply chain at any level (e.g., semiconductor design, front
end semiconductor wafer fabrication, semiconductor assembly test and
packaging, microelectronics assembly, intermediate and end-users of
semiconductors and microelectronics, distributors of such products, as
well as entities supporting semiconductor and microelectronics
manufacturing as providers of materials and equipment). To allow for
aggregation and comparison of data from multiple respondents, the
Department has posted a fillable form on the BIS website that
commenters must download and fill out for submission to <a href="https://www.regulations.gov">https://www.regulations.gov</a>. See the ADDRESSES section of this notice for where
to find the fillable forms.
The Department is specifically seeking the following information
and data:
1. For semiconductor product design, front and back-end
manufacturers and microelectronics assemblers, and their suppliers and
distributors:
a. Identify your company's role in the semiconductor product supply
chain.
b. Indicate the technology nodes (in nanometers), semiconductor
material types, and device types that this organization is capable of
providing (design and/or manufacture).
c. For any integrated circuits you produce--whether fabricated at
your own facilities or elsewhere--identify the primary integrated
circuit type, product type, relevant technology nodes (in nanometers),
and actuals or estimates of annual sales for the years 2019, 2020, and
2021 based on anticipated end use.
d. For the semiconductor products that your organization sells,
identify those with the largest order backlog. Then for the total and
for each product, identify the product attributes, sales in the past
month, and location of fabrication and package/assembly.
i. List each product's top three current customers and the
estimated percentage of that product's sales accounted for by each
customer.
e. For each phase of the production process, identify whether your
organization carries out the step internally or externally. For your
organization's top semiconductor products, estimate each product's (a)
2019 lead time and (b) current lead time (in days), both overall and
for each phase of the production process. Provide an explanation of any
current delays or bottlenecks.
f. For your organization's top semiconductor products, list each
product's typical and current inventory (in days), for finished
product, in-progress product, and inbound product. Provide an
explanation for any changes in inventory practices.
g. What are the primary disruptions or bottlenecks that have
affected your ability to provide products to customers in the last
year?
h. What is your organization's book-to-bill ratio for the past
three years? Explain any changes.
i. If the demand for your products exceeds your capacity, what is
the primary method by which your organization allocates the available
supply?
j. Does your organization have available capacity? If yes, what is
preventing the filling of that capacity?
k. Is your organization considering increasing its capacity? If
yes, in what ways, over what timeframe, and what impediments exist to
such an increase? What factors does your organization consider when
evaluating whether to increase capacity?
l. Has your organization changed its material and/or equipment
purchasing levels or practices in the past three years?
m. What single change (and to which portion of the supply chain)
would most significantly increase your ability to supply semiconductor
products in the next six months?
2. Questions for intermediate users and end users of semiconductor
products or integrated circuits:
a. Identify your type of business and the types of products you
sell.
b. What are the (general) applications for the semiconductor
products and integrated circuits that you purchase?
c. For the semiconductor products that your organization purchases,
identify those that present the greatest challenge for your
organization to acquire. Then for each product, identify the product
attributes and purchases in 2019 and 2021, as well as average monthly
orders in 2021. Then estimate the quantity of each product your
organization would purchase in the next six months barring any
production constraints as well as the amount your organization expects
to actually be able to purchase. For each of your organization's top
semiconductor products, estimate each product's lead times and your
organization's inventory for (a) 2019 and (b) currently (in days).
Provide an explanation of any current delays or bottlenecks.
d. What are the primary disruptions or bottlenecks that have
affected your ability to provide products to customers in the last
year?
e. Is your organization limiting production due to lack of
available semiconductors? Explain.
f. What percentage of your current production has your organization
had to defer, delay, reject, or suspend in the past year? Explain.
g. Is your organization considering or carrying out new investments
to mitigate semiconductor sourcing difficulties? Explain.
h. What semiconductor product types are most in short supply and by
what estimated percentage relative to your demand? What is your view of
the root cause?
i. Has your organization changed its material and/or equipment
purchasing levels or practices in the past three years?
j. What single change (and to which portion of the supply chain)
would most significantly increase your ability to purchase
semiconductors in the next six months?
k. What percentage of your orders are fulfilled by distributors
versus through direct purchase orders to semiconductor product
manufacturers?
l. For the semiconductor products your organization purchases, how
long (in months) are the typical purchase commitments? How, if at all,
do your organization's purchase commitments differ for products in
short supply?
m. Has your organization faced ``de-commits'' (defined as a
notification from a supplier that expected or committed supply will not
be delivered in the agreed-upon time and quantity) in recent months? If
this is a significant issue, please explain (e.g., nature of product,
supplier, impact).
Requirements for Written Comments
The <a href="https://www.regulations.gov">https://www.regulations.gov</a> website allows users to provide
comments by filling in a ``Type Comment'' field, or by attaching a
document using an ``Upload File'' field.
[[Page 53033]]
As noted above, commenters will be required to use the BIS fillable
form available on the BIS website when submitting comments in <a href="https://www.regulations.gov">https://www.regulations.gov</a>. The Department prefers that any additional
comments be provided in a separate attached document. The Department
prefers supplemental submissions in Microsoft Word (.doc files) or
Adobe Acrobat (.pdf files). If the submission is in an application
format other than Microsoft Word, Microsoft Excel, or Adobe Acrobat,
please indicate the name of the application in the ``Type Comment''
field. Please do not attach separate cover letters to electronic
submissions; rather, include any information that might appear in a
cover letter within the comments. Similarly, to the extent possible,
please include any exhibits, annexes, or other attachments in the same
file, so that the submission consists of one supplemental file instead
of multiple additional files. Comments (both public comments and non-
confidential versions of comments containing business confidential
information) will be placed in the docket and open to public
inspection. Comments may be viewed on <a href="https://www.regulations.gov">https://www.regulations.gov</a> by
entering docket number BIS-2021-0036 in the search field on the home
page.
All filers should name their files using the name of the person or
entity submitting the comments. Anonymous comments are also accepted.
Communications from agencies of the United States Government will not
be made available for public inspection.
Anyone submitting business confidential information should clearly
identify the business confidential portion at the time of submission,
file a statement justifying nondisclosure and referring to the specific
legal authority claimed, and provide a non-confidential version of the
submission. The BIS fillable form available on the BIS website
referenced above will allow for an indication at the top of each page
for whether it contains business confidential information. Users
submitting a form that contains business confidential information, will
need to submit a non-confidential version of the same form that does
not contain the confidential business information. The non-confidential
version of the submission will be placed in the public file on <a href="https://www.regulations.gov">https://www.regulations.gov</a>. For comments submitted electronically containing
business confidential information, the file name of the business
confidential version should begin with the characters ``BC''. Any page
containing business confidential information must be clearly marked
``BUSINESS CONFIDENTIAL'' on the top of that page. The non-confidential
version must be clearly marked ``PUBLIC''. The file name of the non-
confidential version should begin with the character ``P''. The ``BC''
and ``P'' should be followed by the name of the person or entity
submitting the comments or rebuttal comments. If a public hearing is
held in support of this assessment, a separate Federal Register notice
will be published providing the date and information about the hearing.
BIS does not maintain a separate public inspection facility.
Requesters should first view the BIS's web page, which can be found at
<a href="https://efoia.bis.doc.gov/">https://efoia.bis.doc.gov/</a> (see ``Electronic FOIA'' heading). If
requesters cannot access the website, they may call 202-482-0795 for
assistance. The records related to this assessment are made accessible
in accordance with the regulations published in part 4 of title 15 of
the Code of Federal Regulations (15 CFR 4.1 through 4.11).
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-20348 Filed 9-23-21; 8:45 am]
BILLING CODE 3510-33-P
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