PSC Urges Clarity and Balance in FAR Semiconductor Prohibition Proposed Rule

April 20, 2026 | By PSC Staff

On April 20, 2026, PSC submitted industry-driven comments on the Federal Acquisition Regulatory Council’s (FAR) proposed rule, “Prohibition on Certain Semiconductor Products and Services” (FAR Case 2023-008), published in the Federal Register on February 17, 2026.

With this proposed rule, the FAR Council is seeking to modify the FAR to implement elements of Section 5949 and establish a prohibition on the procurement of certain electronic products and services.

PSC provided high-level comments and concerns, emphasizing three overarching issues: (1) the rule remains overly broad in its practical application, creating new compliance burdens across a wide range of contractors; (2) the federal government has not yet addressed industry's longstanding concern that the pace of domestic semiconductor supply development is insufficient to meet the statutory timeline; and (3) volatility in component markets may affect both product availability and the ability to transition quickly to cleared alternatives.

PSC also highlighted the need for greater definitional clarity, a better-defined reasonable inquiry standard, a more workable reporting timeline, clearer waiver processes, and additional protections for small businesses and service providers—as well as continued structured engagement with industry ahead of final implementation. Click here to access PSC’s comments.