New Chips Manufacturing and Export Controls Updated
The Department of Commerce’s Bureau of Industry and Security (BIS) has released two interim final rules regarding the exportation of semiconductors and certain advanced computing items.
The first rule regarding the export controls on semiconductor manufacturing imposes controls on additional types of semiconductor manufacturing equipment; refining and better focuses the U.S. persons restrictions to ensure U.S. companies cannot provide support to advanced PRC semiconductor manufacturing and codifying previously existing agency guidance, and expands license requirements for semiconductor manufacturing equipment to apply to additional countries beyond the PRC and Macau, to 21 other countries for which the U.S. maintains an arms embargoes.
The second rule outlines additional export controls and end use limitations on semiconductors and supercomputing and advanced computing devices. The AC/S IFR retains the licensing requirements for the PRC (including Hong Kong and Macau) imposed in the October 7, 2022, rule and makes several updates including adjusting the parameters that determine whether an advanced computing chip requires a license; and imposing new measures to address risks of circumvention of the controls including by expanding controls to additional countries.
The Export Controls on Semiconductor Manufacturing Items Interim Final Rule and the Implementation of Additional Export Controls: Certain Advanced Computing Items; Supercomputer and Semiconductor End Use; Updates and Corrections Interim Final Rule can be found on the BIS website https://www.bis.doc.gov/index.php/about-bis/newsroom/2082.