2023 National Defense Authorization Act (NDAA)

Prohibition on Government Purchases and Use of Certain Semiconductors

Section 5949 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 contains two significant prohibitions regarding the procurement and use of semiconductor products and services from specific Chinese companies and other foreign countries of concern (the "Semiconductor Prohibitions"). Although many aspects of the prohibitions remain unclear, the legislation portends noteworthy obligations in the coming years for government contractors, their suppliers, and those who may be interested in entering into agreements with the United States.