On January 6, 2017, the President’s Council of Advisors on Science and Technology (“PCAST”) issued a report entitled Ensuring Long Term U.S. Leadership in Semiconductors (the “PCAST Report”). The PCAST Report urged then President Obama to counter the policies of the People’s Republic of China (the “PRC” or “China”) that are designed to achieve a global leadership position in the semiconductor industry.
Given the role of semiconductors in connection with technological innovation, economic prosperity, and U.S. national security, the PCAST Report stresses the need for the U.S. to maintain dominance in this industry. The PCAST Report explains that long-term trends curbing the U.S.’s leadership in this field – including technological limits and shifting markets – are compounded by China’s non-market industrial policies.