It was recently announced that the U.S. Department of Commerce will propose a ban on using Chinese software and hardware in ICE and EV automobiles. Reportedly, the ban on Chinese software would take effect with 2027 model-year vehicles, and hardware prohibitions would be effective with 2029 and 2030 model-year vehicles. Recognizing that in the U.S. and Canada, an automotive model year is not the year of production (e.g., 2025 models have been offered for sale since June from some automakers) – if these reported model-year timeframes to become effective, it is likely that automotive OEMs and suppliers will be unable to meet at least some of the measure’s hardware restrictions due to the lengthy qualifications processes for replacement devices. Decoupling from China for automotive ICs will prove even more difficult as the nation has doubled down on trailing-edge semiconductor manufacturing, given that some 90% of automotive-grade semiconductors are manufactured with 40-nanometer and larger process nodes.