Section 5949 semiconductor procurement prohibition
Proposed rule issued February 17, 2026; comments closed April 20, 2026; final rule expected before the statutory effective date of December 23, 2027. Prohibits agency acquisition of electronic products or services containing SMIC, CXMT, or YMTC semiconductors (and affiliates), including COTS and micro-purchases. Includes grandfathering for pre-2027 equipment, a no-alternative-source exception until December 23, 2028, a commercial-services carve-out that notably excludes IT and telecommunications services, a 72-hour contractor disclosure duty, and renewable two-year waivers. Telecom members are directly in scope.
