A new report from the Semiconductor Industry Association (SIA) finds that the US chip sector carries deep supply chain exposure to China, underscoring how tightly American semiconductor design, manufacturing and sourcing remain interwoven with Chinese suppliers and markets despite years of export controls and reshoring policy.

The SIA, the Washington-based trade body representing US semiconductor companies, issued the assessment as regulators continue to tighten restrictions on advanced chip technology transfers to China. The report's central finding: exposure runs through multiple links of the semiconductor value chain rather than any single chokepoint.

What does the report cover?

The SIA analysis addresses the structure of US semiconductor supply chains and the degree to which they depend on China. The trade group's publications in this area typically examine:

• Sourcing of materials, components and manufacturing inputs
• Reliance on China as a production and assembly base
• China's role as an end market for US chipmakers
• Policy measures, including export controls and subsidies, that reshape those flows

The report arrives amid an ongoing US policy push — through export licensing regimes and incentive programs — to reduce strategic dependence on Chinese supply chains. Its conclusion that exposure remains deep signals that decoupling in semiconductors is proceeding unevenly across the industry.

Why does China exposure matter for US chipmakers?

China sits at both ends of the semiconductor value chain for US firms. It supplies manufacturing inputs and assembly capacity, and it ranks among the largest sales markets for American chip designers and toolmakers. Restricting one side of that relationship creates direct revenue consequences; restricting the other raises production costs and sourcing risk.

The SIA has repeatedly warned that unilateral US measures can cost American firms market share, since suppliers based outside the US face fewer constraints on selling into China. The new report's supply chain findings add weight to that argument by documenting how much of the physical pipeline still runs through Chinese hands.

What happens next?

The report gives policymakers and industry planners a quantified picture of where dependencies persist. For semiconductor procurement and strategy teams, its implications are direct:

• Audit supplier tiers for China-linked inputs before single-sourcing decisions
• Track export control rule changes that can reclassify existing supply relationships overnight
• Weigh revenue exposure in China against compliance risk when forecasting

SIA's assessment lands at a moment when Washington is debating further tightening of technology controls. The report's documentation of deep exposure suggests that any next round of restrictions will force hard trade-offs between security policy and commercial continuity for US chip firms.

Die Signal will continue to track the policy response and the report's reception in Washington and across the semiconductor industry.