Senate Bill Would Create a National Supply Chain Security Center

Citing the vital need for a secure U.S. industrial base, U.S. Senators Mike Crapo (R-Idaho) and Mark Warner (D-Virginia) have introduced bipartisan legislation to guard against attempts by China and others to undermine U.S. national security by exploiting and penetrating U.S. supply chains.

The Manufacturing, Investment, and Controls Review for Computer Hardware, Intellectual Property and Supply (MICROCHIPS) Act (S. 2316) would develop a national strategy to assess and prevent risks to critical U.S. technologies.

It would also establish a National Supply Chain Security Center within the Office of the Director of National Intelligence to collect supply chain threat information and disseminate it to agencies with the authority to intervene; and

“Actions by the People’s Republic of China have contributed to an unfair and unsafe advantage in its technological race against the United States,” said Senator Crapo. “Through government investments and subsidies, as well as intellectual property theft of companies like Idaho’s Micron, China aims to dominate a $1.5 trillion electronics industry, which creates serious, far-reaching threats to the supply chains that support the U.S. government and military. The MICROCHIPS Act would create a coordinated whole-of-government approach to identify and prevent these efforts and others aimed at undermining or interrupting the timely and secure provision of dual-use technologies vital to our national security.”

“While there is a broad recognition of the threats to our supply chain posed by China, we still lack a coordinated, whole-of-government strategy to defend ourselves,” said Senator Warner. “As a result, U.S. companies lose billions of dollars to intellectual property theft every year, and counterfeit and compromised electronics in U.S. military, government and critical civilian platforms give China potential backdoors to compromise these systems. We need a national strategy to unify efforts across the government to protect our supply chain and our national security.”

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