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MODERNIZING CHIP PRODUCTION AND REGULATING II RISKS: KEY POINTS OF THE SPEECH BY J. SULLIVAN, NATIONAL SECURITY ADVISOR TO THE U.S. PRESIDENT'S NATIONAL SECURITY ADVISER J. SULLIVAN AS OF OCTOBER 24, 2024. AS A BATON FOR THE NEW U.S. ADMINISTRATION
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07 november 2024

MODERNIZING CHIP PRODUCTION AND REGULATING II RISKS: KEY POINTS OF THE SPEECH BY J. SULLIVAN, NATIONAL SECURITY ADVISOR TO THE U.S. PRESIDENT'S NATIONAL SECURITY ADVISER J. SULLIVAN AS OF OCTOBER 24, 2024. AS A BATON FOR THE NEW U.S. ADMINISTRATION

On October 24, 2024, Jake Sullivan, National Security Advisor to the President of the United States, gave a speech at the National Defense University on the outlook for the semiconductor industry and the regulation of artificial intelligence.
Editorial Board of the Center for Global IT Cooperation

On October 24, 2024, Jake Sullivan, National Security Advisor to the President of the United States, gave a speech at the National Defense University on the outlook for the semiconductor industry and the regulation of artificial intelligence.

 

In his speech, the official outlined a number of significant initiatives and trends that the U.S. government plans to implement in the near future, as well as a rationale for the upcoming changes in AI doctrine and industry development. However, it is worth noting the timing of the speech - less than two weeks before the presidential election In this context, the idea of continuing the course of the outgoing administration of J. Biden to its successor is manifested as a leitmotif of the speech. And now it is known that it will be the newly arrived in the White House team of Donald Trump, which once laid the foundations of the current course.

 

So, according to Sullivan, it is artificial intelligence that is assigned the role of a determining factor in the future global development, and the U.S. must ensure that this factor works in accordance with its national interests and does not create obstacles for them. The National Security Advisor also noted that the development of AI and global leadership in the industry is impossible without improving the production of next-generation chips with extended memory, and therefore the US semiconductor industry will be qualitatively modernized. The changes provide for the return of production facilities to the territory of the United States, active attraction of personnel from abroad, and in the long term - closing the chain within the country by creating its own equipment for chip production. The expansion of production also includes the construction of new alternative energy facilities (primarily nuclear, wind, and solar power plants).

 

It should be understood that the statements made by the consultant on the guarantees of independent production of advanced chips are not a call to start active work on the creation of facilities, but rather an emphasis on the continuation of measures already taken and the acceleration of processes to attract production and qualified personnel to the territory of the USA (so-called reshoring). Key decisions on this issue have already been made in the context of the CHIPS Act (Incentives for Semiconductor Manufacturing in America) and the FABS Act, which provided more than $200 billion in federal funding for the industry.

 

There is no doubt that the implementation of these laws will continue in accordance with the U.S. national interest. Although Trump is known to have criticized the principle of subsidizing manufacturers and instead proposed tariffs to force production to move to the U.S., the course of capacity reshoring itself will continue. As for industrial energy, much will be determined by the specific needs of individual companies on the ground, and the administration's views will have a very limited impact on the growth of the grid.

 

In his speech, Sullivan paid special attention to the importance of oversight of the industry by security and intelligence agencies. According to the official, it is necessary to monitor the work of companies and production chains, as well as the activities of owners and employees: this will help to prevent the possible transit of technological innovations abroad, and thus into the hands of competitors from China and other unfriendly countries. In addition, "people from the government" should establish close contact with information security and counterintelligence software developers, effectively placing them under their full control, and prioritizing any contacts with foreign partners with "permission from above".

 

These talking points stem from provisions in the 2018 National Cybersecurity Strategy, as well as a series of 2017 executive orders on strengthening the cybersecurity of federal networks and critical infrastructure. Both documents were adopted by the D. Trump administration, but continued to be implemented in subsequent years under J. Biden: for example, the need to maintain centralized control over cybersecurity and to contain the "Chinese/Russian/Iranian threat" is included in the 2022, 2023, and 2024 versions of the cybersecurity strategy.

 

In the final part of the speech, the National Security Advisor noted that the introduction of AI systems into widespread use should be preceded by their clear standardization - first and foremost, based on the criterion of trust by society and experts. The official also emphasized that U.S. safety and risk protection standards should be established both domestically and internationally. This, along with managing the export of advanced chips, as well as controlling computing power and regulating leading AI companies, should ensure Washington's leadership in the new innovation race, Sullivan concluded.

 

It is safe to say that the future administration of D. Trump - especially its technological wing headed by I. Musk - will have no objections both to this conclusion and to the need to continue the course set in the first cadence.

 

Link to the full text of the speech on the website of the White House: https://www.whitehouse.gov/briefing-room/speeches-remarks/2024/10/24/remarks-by-apnsa-jake-sullivan-....

 

Link to the Center's article on the Biden Administration's actions to support the semiconductor industry: https://cgitc.ru/media/o-merakh-ssha-po-ukrepleniyu-kadrovogo-potentsiala-dlya-proizvodstva-poluprov....

 

The Center's research on the current strategies of semiconductor market leaders: https://cgitc.ru/research/chipy-globalnyy-landshaft-i-strategii-liderov-rynka5107269/.

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