ANNOUNCEMENT 23 Jan 2018
The law allows actions that may be discriminatory in support of products that receive this designation.
NUMBER OF INTERVENTIONS
By Presidential Determination No. 2018-03 of January 23, 2018, President Trump determined, pursuant to section 4533(a)(5) of the Defense Production Act of 1950, that critical technology item shortfalls affecting domestic production of trusted advanced photomasks are critical to national defense. According to this order, “Without Presidential action under this Act, the United States defense industrial base cannot reasonably be expected to adequately provide those capabilities or critical technology items in a timely manner. Further, purchases, purchase commitments, or other action pursuant to section 4533 of the Act are the most cost effective, expedient, and practical alternative method for meeting the need for those capabilities or critical technology items.”
The order did not specify precisely what action might be taken in consequence of this determination. The relevant section of the Defense Production Act of 1950 grants the president an array of authorities. It provides that “[t]o create, maintain, protect, expand, or restore domestic industrial base capabilities essential for the national defense, the President may make provision” as follows:
(A) for purchases of or commitments to purchase an industrial resource or a critical technology item, for Government use or resale;
(B) for the encouragement of exploration, development, and mining of critical and strategic materials, and other materials;
(C) for the development of production capabilities; and
(D) for the increased use of emerging technologies in security program applications and the rapid transition of emerging technologies—
(i) from Government-sponsored research and development to commercial applications; and
(ii) from commercial research and development to national defense applications.
Depending on the specific actions that are taken in pursuit of this determination, the United States might or might not discriminate against foreign suppliers of photomasks. For this reason, GTA classifies this presidential determination as amber.