Please contact: Tim Flamank or Francesco Liberatore with any questions.
Supply chain disruption remains a key risk in the semiconductor industry. Recent events have shown that even beyond high-tech corners of the sector, supply and demand dynamics over critical components, expertise and end products can change quickly and dramatically. The consequences for the automotive industry are potentially stark. In this alert, we consider some current trends in the semiconductor industry and suggest legal best practices arising from these. We show practical ways in which understanding and anticipating the legal risks of disruption can be a game-changer in mitigating its impact.
Export controls affecting key components
Export controls are the (if not one of the most) prominent topic of concern across international semiconductor supply chains at the beginning of 2026. Increasingly muscular government intervention across many major parts of the supply chain—from rare earths and advanced manufacturing machinery all the way through to finished chips—has given rise to disruption and uncertainty. Moreover, export control measures are no longer confined to the most advanced, AI-focused chips, with policies becoming increasingly inconsistent and difficult to predict. Many manufacturers are being forced to consider how government intervention might impact their operations and contractual arrangements.
