The Department of Commerce is urging states to use some of their collective $42.5 billion in broadband infrastructure subsidy funds to help build the workforce needed to build out fiber-based broadband and close the digital divide.

That was one of the recommendations in a new report on information and communications technology (ICT) and protecting the communications high-tech equipment supply chain, including undersea cables, modems, fiber optic cables, bridges, routers, and gateways.

"[T]he COVID-19 pandemic and related disruptions have exposed structural vulnerabilities in both domestic and global supply chains that have reduced the availability of critical ICT products and the resiliency of the ICT industry as a whole," said Commerce Secretary Gina Raimondo and Homeland Security Secretary Alejandro Mayorkas Thursday (February 24) about the report assessing the supply chain.

Businesses all over the country are having trouble attracting workers and the broadband technician sector is no exception.

The U.S. ICT industry’s struggle to find qualified workers threatens its ability to fulfill increased demand for key ICT products, impacting implementation of federal and state broadband programs as well as measures to increase manufacturing in the United States," the report concludes.

It also talks about the importance to broadband of continuing to lay fiber optic cable using domestic suppliers, saying that the industry "is currently facing challenges related to supply and demand shifts and bottlenecks."

One of the problems the report identifies is China's excess fiber capacity of hundreds of millions of kilometers that, combined with tens of millions of dollars per company in government subsidies, allows Chinese fiber exports to undercut prices in the U.S. and threaten the viability of domestic suppliers. ■

The Commerce Department is looking for input on how to incentivize investment in domestic semiconductor manufacturing.

Commerce points out that semiconductors are must-have tech for everything from securing the communications (5G) supply chain, to AI, to autonomous systems of all types, to quantum computing.

Commerce pointed out that from about 40% of chip fabrication in 1990, the U.S. accounted for only 11% of the global market by 2019.

On the "glass a little more full front," Intel announced last week, and the White House promoted heavily, that it would be building a $20 billion facility outside of Columbus, Ohio, which the President said would mean 10,000 new jobs, including 3,000 full-time. "My administration is going to keep using all of the tools we have to re-shore our supply chains, strengthen our economic resilience, and make more in America."

The President and Commerce are also pushing Congress to pass the U.S. Innovation and Competition Act, which authorizes almost $90 billion for R&D, manufacturing and supply chains.

Also: Telecom, Video Pinched by Global Microchip Shortage

Topics Commerce said it was particularly interested in hearing about from stakeholders:

1. "A semiconductor financial assistance program that would provide funding, through a competitive process, to private entities, consortia of private entities, or public-private consortia to incentivize the establishment, expansion, or modernization of semiconductor manufacturing facilities and supporting infrastructure.
2. "A National Semiconductor Technology Center to serve as a hub of talent, knowledge, investment, equipment and toolsets.
3. "An advanced packaging manufacturing program that focuses on the challenge of embedding fragile computer chips into very small configurations that combine multiple systems resulting in benefits including lower costs, increased functionality and improved energy efficiency.
4. "The current and future workforce development needs of the semiconductor industry." ■

The Commerce Department has added more restrictions on Chinese telecom equipment supplier Huawei's access to U.S. technology and modified its list of other suspect entities who need special export licenses to square with those new Huawei restrictions. 

The Department's Bureau of Industry Security (BIS) also put another 38 Huawei affiliates* on its Entity List. 

Huawei has been on the BIS Entity List since 2019, meaning companies that wanted to export U.S. tech to Huawei had to get a license. But Commerce said Huawei has been undermining that restriction. 

Related: Huawei Opposes FCC Rip-and-Replace 

"These actions, effective immediately, prevent Huawei’s attempts to circumvent U.S. export controls to obtain electronic components developed or produced using U.S. technology," said Commerce in unveiling the further restrictions.   

The newest restrictions follow ones imposed in May after Commerce said Huawei was undermining the national security and public policy goals of the Entity List. 

But bureau also concurrently revised the Entity List to require a license when any suspect entity acts as a purchaser, intermediate consignee, ultimate consignee, or end user. 

Commerce also announced that after giving it a number of extensions to provide an off ramp for U.S. suppliers, Huawei's temporary general license (TGL) to allow it to continue to access U.S. chips has now expired. 

Related: FCC Flags More Chinese Telecoms 

Commerce had already banned U.S. chip imports to Huawei, but in May extended that to chipsets that are the product of certain manufacturing equipment out side the U.S. if it is clear their ultimate destination is Huawei or any of its affiliates on the Entity List. 

The announcement Monday (Aug. 17) is intended to head off circumvention by making clear the ban applies "1) where U.S. software or technology is the basis for a foreign-produced item that will be incorporated into, or will be used in the 'production' or 'development' of any 'part,' 'component,' or 'equipment' produced, purchased, or ordered by any Huawei entity on the Entity List; or 2) when any Huawei entity on the Entity List is a party to such a transaction, such as a 'purchaser,' 'intermediate consignee,' 'ultimate consignee,' or 'end-user.' 

Related: Huawei Contract Ban Still Work in Progress 

“Huawei and its foreign affiliates have extended their efforts to obtain advanced semiconductors developed or produced from U.S. software and technology in order to fulfill the policy objectives of the Chinese Communist Party,” said Commerce Secretary Wilbur Ross in a statement. “As we have restricted its access to U.S. technology, Huawei and its affiliates have worked through third parties to harness U.S. technology in a manner that undermines U.S. national security and foreign policy interests. This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so.” 

Separately, Congress and the FCC have teamed up to ban broadband subsidies to any carrier using Huawei tech to build out their networks and are coming up with a framework, and money, to rip and replace tech already in place. Congress has also passed a law preventing any government contracting money to be spent on Huawei tech. 

* The additions to the Entity list are Huawei Cloud Computing Technology; Huawei Cloud Beijing; Huawei Cloud Dalian; Huawei Cloud Guangzhou; Huawei Cloud Guiyang; Huawei Cloud Hong Kong; Huawei Cloud Shanghai; Huawei Cloud Shenzhen; Huawei OpenLab Suzhou; Wulanchabu Huawei Cloud Computing Technology; Huawei Cloud Argentina; Huawei Cloud Brazil; Huawei Cloud Chile; Huawei OpenLab Cairo; Huawei Cloud France; Huawei OpenLab Paris; Huawei Cloud Berlin; Huawei OpenLab Munich; Huawei Technologies Dusseldorf GmbH; Huawei OpenLab Delhi; Toga Networks; Huawei Cloud Mexico; Huawei OpenLab Mexico City; Huawei Technologies Morocco; Huawei Cloud Netherlands; Huawei Cloud Peru; Huawei Cloud Russia; Huawei OpenLab Moscow; Huawei Cloud Singapore; Huawei OpenLab Singapore; Huawei Cloud South Africa; Huawei OpenLab Johannesburg; Huawei Cloud Switzerland; Huawei Cloud Thailand; Huawei OpenLab Bangkok; Huawei OpenLab Istanbul; Huawei OpenLab Dubai; and Huawei Technologies R&D UK.

Saying the move was to ensure the U.S. is a player in international tech standards, the Department of Commerce said U.S. companies can disclose technologies--5G, autonomous vehicles, artificial intelligence--to Huawei even though it has declared that company to be a national security threat. 

That disclosure has to be in the setting of a standard-setting body and can only be technology that could have been disclosed to the Chinese telecom before it was put on the Entity List. That is the list of companies that U.S. firms are not supposed to supply with U.S. tech. 

"This action is meant to ensure Huawei’s placement on the Entity List in May 2019 does not prevent American companies from contributing to important standards-developing activities." That is because Huawei has "pervasive participation in standards-development organizations," said Commerce. 

Specifically, Commerce is amending the Huawei entity listing that tech can be disclosed "for the purpose of standards development in a standards-development body without need for an export license." 

Secretary of Commerce Wilbur Ross said the change will ensure "the U.S. industry’s ability to more fully contribute to standards-development activities in the telecommunications sector," given that "[i]nternational standards serve as the critical building blocks for technological development by enabling functionality, interoperability, and safety. U.S. participation and leadership in standard-setting influences the future of 5G, autonomous vehicles, artificial intelligence, and other cutting-edge technologies. 

“The United States will not cede leadership in global innovation. This action recognizes the importance of harnessing American ingenuity to advance and protect our economic and national security,” said U.S. Department of Commerce Secretary Wilbur Ross. “The Department is committed to protecting U.S. national security and foreign policy interests by encouraging U.S. industry to fully engage and advocate for U.S. technologies to become international standards.” 

“We are encouraged by the U.S. Department of Commerce’s plans to issue a regulation that clarifies U.S. companies’ ability to participate in international standards development activities,” said Naomi Wilson, senior director of policy, Asia, for tech policy group ITI. “Confusion stemming from the May 2019 entity list update had inadvertently sidelined U.S. companies from some technical standards conversations, putting them at a strategic disadvantage. We hope this measure will provide much-needed clarification and allow companies to once again compete and lead in these foundational activities that help enable the rollout of advanced technologies, such as 5G and AI, across markets. We look forward to reviewing the rule once posted and working with the administration on implementation.”

The Department of Commerce said it has tightened restrictions on tech exports to China, Russia and Venezuela to better prevent them from buying U.S. tech they could then use to spy under "civilian-user" pretenses or via supply chains, or use the tech to develop weapons.

It is the latest move as the government tries to keep foreign governments from using tech against the U.S.

Among the changes is expanding control of semiconductor equipment and sensors.

Commerce is also removing a license exception for exports to civilian users in countries that pose national security concerns and proposes eliminating the exception for partner countries that then export that tech to countries of concern.

The Department of Commerce has extended the comment deadline on whether it should continue to extend the temporary general license (TGL). 

Commerce said the current extension, the fourth such extension, will still end May 15. 

The Department of Commerce has continued to extend the TGL that allows U.S. companies to continue to supply chips to Huawei even though the Chinese telecom's network hardware has been put on Commerce's list of entities "engaged in activities that are contrary to U.S. national security or foreign policy interests" and thus off limits to such U.S. high-tech exports.   

"The Department has received requests from industry to allow for additional comments, and is granting this request in support of robust consideration of future extensions of the TGL," it said Wednesday in granting that extension. Commerce did not say whether the added time request was related to the pandemic.

Commerce said the extensions are intended to allow companies to shift to alternative equipment and software sources and to allow telecom providers, particularly in rural areas, "the ability to continue to temporarily and securely operate existing networks while they identify alternatives to Huawei for future operation." 

The FCC wants telecoms to rip and replace Hauwei tech and Congress has seconded that, supplying a billion dollars for the effort.