Testimony of Christopher A. Padilla

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FOR IMMEDIATE RELEASE	BUREAU OF INDUSTRY AND SECURITY
Monday, August 13, 2007	Office of Public Affairs
www.bis.doc.gov	202-482-2721

INITIATION OF INTEGRATED CIRCUIT MANUFACTURING AND DESIGN INDUSTRIAL BASE ASSESSMENT

WASHINGTON — The Commerce Department’s Bureau of Industry and Security (BIS), in cooperation with the Defense Department (DOD), is initiating an industrial base assessment of the U.S. supply base for the design and production of integrated circuit (IC) products. This project will support the defense community’s management of electronic components and systems procurement and enhance understanding of the capabilities of domestic suppliers.

“This assessment will provide insight into the breadth and depth of U.S. integrated circuit design and manufacturing capacity for legacy parts as well as cutting edge chips,” said Assistant Secretary for Export Administration Christopher Padilla. “A great deal of top quality capability for producing computer chips remains in the United States, and it is important we understand the scope and source of these resources.”

A February 2005 report published by the Defense Science Board Task Force on High Performance Microchip Supply raised concerns about the migration of critical microelectronics manufacturing abroad, due to the technology’s strategic significance and the need to maintain a technological advantage. The BIS assessment will support a DOD effort to establish a Trusted Integrated Circuit Policy, scheduled for release later this year.

In performing its assessment, BIS will:

Establish an interagency working group of experts from DOD, the Intelligence Community, national laboratories and universities, and consult with the semiconductor industry.

Survey U.S. companies (e.g., manufacturers, designers, wafer blank producers and mask blank suppliers) to establish a baseline for current U.S. capabilities and assess future outlook.

Analyze survey data and supplement that information with on-site visits to selected facilities and input from technical experts.

Develop a comprehensive report detailing the specific capabilities of the U.S. integrated circuit industrial base.

BIS is scheduled to release the final report by the end of 2007.