Biden Activates Defense Production Act to Boost Circuit Board Manufacturing

President Joe Biden has taken steps to ensure the United States’ control over its supply of electronic materials and equipment by implementing the Defense Powers Act (DPA) for two major components used in manufacturing electronic devices: printed circuit boards and advanced packaging. Executive Order 14017, “America’s Supply Chains,” signed in February 2021, aims to address vulnerabilities in military readiness and economic competitiveness. The latest presidential directive delegates the DPA’s authorities to the Department of Defense (DoD) with regard to printed circuit boards and advanced packaging, which will help strengthen U.S. manufacturing and reduce dependence on China as the world’s largest producer of electronic components and devices.

The DPA authorizes the president to control the production of items necessary for national defense by allocating materials, services, and facilities for their production. The president can also prohibit hoarding of supplies, offer loans or loan guarantees, and equip government or privately-owned factories. The law has been used by Presidents Obama, Trump, and Biden, mostly to prioritize the fulfillment of federal government orders for medical and military equipment. By including printed circuit boards and advanced packaging under the DPA, the administration aims to enhance U.S. production of these items, which benefits military readiness and supports the president’s larger agenda of strengthening domestic manufacturing.

Printed circuit boards are electronic circuits etched into a material like copper, to which other electronic components can be attached. Advanced packaging involves grouping several electronic components into a single device.

The CHIPS and Science Act of 2022 provides $280 billion for the research and manufacture of semiconductors in the United States. It was passed with bipartisan support amid a global shortage of computer chips. China currently controls 54 percent of computer chip sales and produces over two-thirds of the world’s circuit boards, including those of Hong Kong. Hence, with these steps, the DoD has the authority to strengthen U.S. production of these items.

The DPA was first enacted in September 1950 during the Korean War, and has been renewed on several occasions since then. Its current version expires in 2025.