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ARTICLE · 18 MARCH 2026

FAR Council Proposes Rule Restricting Certain Semiconductor Products And Services

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The Federal Acquisition Regulatory (FAR) Council published a proposed rule on Feb. 17, 2026, to implement Section 5949 of the FY 2023 National Defense Authorization Act (NDAA).

United StatesGovernment, Public Sector
Bret S. Wacker
Bret S. Wacker
Ronald D. Sullivan
Ronald D. Sullivan
J. Chris White
J. Chris White
Gabrielle Long
Gabrielle Long

The Federal Acquisition Regulatory (FAR) Council published a proposed rule on Feb. 17, 2026, to implement Section 5949 of the FY 2023 National Defense Authorization Act (NDAA). The proposal would amend the FAR to prohibit federal agencies from procuring products or services that include certain covered semiconductor products or services sourced from entities identified by statute or subsequently designated by the U.S. Government.

Background

Section 5949 of the NDAA prohibits federal agencies from acquiring products or services containing “covered semiconductor products” provided by specific entities connected to a foreign country of concern. The FAR Council's proposal codifies these statutory prohibitions and clarifies contractor obligations for compliance in federal procurement.

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