Proposed FAR Rule on Semiconductors: Will the Federal Government Buy Contractors’ Technology?

On February 17, 2026, the Federal Acquisition Regulation (FAR) Council proposed a new rule that will impact technology companies that sell electronic products and services to the federal government, should those products and services include certain semiconductor products or services. The proposed rule implements Section 5949 of the 2023 National Defense Authorization Act, and continues the federal government’s efforts to prohibit sources deemed to be threats to national security. Not unlike... By: Wilson Sonsini Goodrich & Rosati