Supply Chain Weaknesses

Supply chain weaknesses are critical infrastructure vulnerabilities arising from dependence on foreign-sourced components, single-supplier concentration, or inadequate cybersecurity vetting of hardware and software throughout the technology procurement lifecycle. These supply chain risks create opportunities for adversary exploitation—foreign actors may embed surveillance capabilities in telecommunications equipment, disrupt component availability during national emergencies, or exploit vendor maintenance access for intelligence collection against American networks.

The FY 2027 R&D memorandum identifies supply chain security as essential to national competitiveness in artificial intelligence and advanced manufacturing, with federal semiconductor investments specifically aimed at strengthening supply chain resilience for AI, quantum computing, and critical infrastructure applications.

BEAD Program requirements address supply chain risks through mandatory Supply Chain Risk Management (SCRM) attestations: prospective subgrantees must demonstrate SCRM plans based on NIST publication NISTIR 8276 and NIST 800-161 cybersecurity supply chain guidance. The Infrastructure Investment and Jobs Act further prohibits BEAD-funded networks from using covered telecommunications equipment from designated foreign adversaries under Section 889 compliance requirements.