Washington — A new report from the National Academies of Sciences, Engineering, and Medicine has called on the U.S. Department of Defense (DOD) to adopt a more comprehensive and coordinated strategy to secure access to advanced semiconductor technologies — an area that has become vital to both national security and economic stability. The study highlights that America’s leadership in semiconductor innovation is no longer guaranteed, emphasizing the urgent need for long-term investments, stronger partnerships, and more agile coordination across the public and private sectors.
The report comes amid renewed U.S. efforts to strengthen its semiconductor ecosystem following the 2022 CHIPS and Science Act, a sweeping federal initiative designed to boost domestic chip manufacturing and reduce dependence on foreign supply chains. According to the study, while the CHIPS Act has provided an essential foundation, the Pentagon must take additional steps to ensure that its own microelectronics needs — from radar and sensor systems to advanced computing hardware — are met with cutting-edge technologies produced either domestically or through trusted allies.
A Call for Long-Term Investment and Collaboration
The DOD has historically played a central role in shaping the semiconductor industry. Decades ago, its funding and early adoption of microelectronics helped establish U.S. dominance in the field. However, that leadership has since eroded. Many of the world’s most advanced chips are now designed and manufactured overseas, primarily in Asia, creating new vulnerabilities for the U.S. defense supply chain.
“The United States relies heavily on foreign sources for both its commercial and defense semiconductor needs,” said Liesl Folks, chair of the committee that authored the report and a professor of electrical and computer engineering at the University of Arizona. “That dependence has created serious challenges for the Department of Defense, limiting its ability to innovate quickly and maintain technological superiority.”
To reverse this trend, the report urges the Pentagon to expand its engagement with private industry and academic research institutions. It recommends leveraging existing partnerships such as the Microelectronics Commons initiative, which connects defense agencies with commercial semiconductor innovation hubs, and creating new collaborative programs to promote research and manufacturing capacity inside the United States.
Mitigating Foreign Dependence Through “Friend-Shoring”
The report also highlights a growing risk: that the most advanced semiconductor manufacturing capabilities will remain concentrated abroad and largely under the control of foreign-owned firms. These chips are critical for maintaining the performance edge of U.S. defense systems, from precision-guided weapons to artificial intelligence-enabled intelligence platforms.
To mitigate these risks, the study recommends a strategy known as “friend-shoring” — establishing secure semiconductor supply chains through cooperation with trusted partner nations. This approach would reduce the risk of disruption while maintaining the diversity and resilience of global production networks. At the same time, it stresses the importance of reshoring at least a portion of advanced chip manufacturing capacity to U.S. soil to ensure reliable access during crises.
Overcoming Bureaucratic Barriers to Innovation
The report identifies another obstacle within the DOD itself: layers of regulatory and administrative rules that slow down procurement and technology adoption. These internal barriers often prevent the Pentagon from engaging efficiently with commercial semiconductor firms or taking advantage of fast-moving innovations in the private sector.
To address this, the authors propose new frameworks that would allow the DOD to collaborate more flexibly with technology companies while still maintaining strong oversight and security standards. Streamlining bureaucratic processes could accelerate the development and deployment of next-generation microelectronics, reducing costs and improving defense readiness.
Investing in Breakthrough Semiconductor Technologies
The report stresses that the DOD should not only strengthen supply chains but also play an active role in advancing new, “leap-ahead” semiconductor technologies that can meet its unique defense needs. These investments should target high-performance, energy-efficient, and radiation-hardened chips used in demanding military environments, as well as artificial intelligence (AI) and machine learning (ML) applications that increasingly rely on vast quantities of commercial chips.
To maintain its edge, the Pentagon is encouraged to align its semiconductor research initiatives with those of other federal agencies — including the Department of Commerce, the Department of Energy, and the National Science Foundation — all of which are investing heavily in microelectronics research through the CHIPS and Science Act. Formal coordination across these agencies, the report says, would prevent duplication and maximize the overall impact of federal spending.
Modernizing Defense Systems to Keep Pace with Technology
Another challenge facing the Pentagon is the slow pace of modernization. Defense systems often take more than a decade to develop, which means that by the time new aircraft, ships, or weapons are deployed, their electronic components may already be outdated. Historically, Congress has favored funding new systems rather than upgrading existing ones, leaving the military with legacy platforms that use older, less secure, and less efficient chips.
To solve this, the report recommends a comprehensive modernization effort that allows more rapid updates to both software and hardware components. The Pentagon should adopt design approaches that make it easier to replace outdated chips, such as modular architectures and digital design automation tools that shorten development cycles. Working closely with private-sector technology firms could also help the DOD adopt more agile practices commonly used in commercial industries.
Closing the Semiconductor Workforce Gap
Beyond technology and infrastructure, the report points to a critical human capital issue: a growing shortage of skilled workers in the U.S. semiconductor industry. The sector depends on a range of expertise — from technicians and engineers to computer scientists — yet workforce pipelines are struggling to keep pace with demand. This shortage is expected to worsen as global competition intensifies and new fabrication facilities open across the country.
To address the talent gap, the report calls for innovative educational and training programs. These include shorter, more focused certification courses, online learning opportunities, and expanded apprenticeship models that combine hands-on experience with technical instruction. The Pentagon, it says, should coordinate its workforce development initiatives with those led by the National Institute of Standards and Technology (NIST) and the National Science Foundation under the CHIPS Act framework.
In addition, the report suggests that interagency collaboration could help modernize immigration policies to attract and retain highly skilled international talent — a step viewed as essential to maintaining America’s technological edge in semiconductor research and manufacturing.
A Path Forward for U.S. Semiconductor Leadership
The study — conducted by the Committee on Global Microelectronics: Models for the Department of Defense in Semiconductor Public-Private Partnerships — underscores that the U.S. defense community cannot rely solely on past successes to maintain its leadership in microelectronics. Instead, it must embrace a forward-looking approach that combines investment, innovation, and collaboration.
The National Academies, established under a congressional charter signed by President Abraham Lincoln in 1863, continue to provide independent analysis to guide U.S. policy on science and technology. This latest report serves as a warning — and a roadmap — for how the Pentagon can strengthen national security by rebuilding the nation’s semiconductor foundation.
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