WASHINGTON DC – President Joe Biden has authorized the use of the Defense Production Act to spur domestic and Canadian production of printed circuit boards, citing the technology's importance to national defense.

A PD presidential determination signed by Biden on Monday allows the Department of Defense (DoD) to utilize its Defense Production Act (DPA) Title III authorities to invest $50 million in advanced microelectronics capacity and ensure the production of state-of-the-art integrated circuits in the United States.

"United States industry cannot reasonably be expected to provide the capability for the needed industrial resource, material, or critical technology item in a timely manner," Biden said in a memo released by the White House. "I find that action to expand the domestic production capability for printed circuit boards and advanced packaging is necessary to avert an industrial resource or critical technology item shortfall that would severely impair national defense capability."

The Defense Production Act ruling also calls for more "advanced packaging" that allows multiple devices to be packaged and mounted on a single electronic device shrinking them and making power use more efficient.

“The rapid changes occurring within the microelectronics industry make it imperative for the Department of Defense to ensure that this critical sector can support the nation’s defense needs. The Presidential Determination will allow the DoD to use additional tools to ensure the resilience of American microelectronics manufacturing,” Anthony Di Stasio, Director of the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office. “We are committed to working with our interagency partners to expand the microelectronics domestic industrial base in the United States.”

The PD allows the DoD’s Office of Defense Production Act Investments (DPAI), which is part of the Office of the Under Secretary of Defense for Acquisition & Sustainment (A&S), to leverage DPA Title III incentives, including purchases and purchase commitments, to support the PrCB and Advanced Packaging industrial base.

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