Chip export controls bulletin

The Bureau of Industry and Security announced a sweeping set of new export controls it said will restrict China’s ability to acquire advanced computing chips and manufacture advanced semiconductors. The controls, outlined in a final rule that will take effect in phases, will impose new restrictions on certain advanced computing semiconductor chips and semiconductor manufacturing items, impose controls on transactions for supercomputer end-uses and certain integrated circuit end-uses, and issue new restrictions on transactions involving certain entities on the Entity List.

The rule, which adds a host of new license requirements, will notably impose new restrictions on U.S. items destined to a Chinese semiconductor fab if those items are capable of advanced logic or memory chip production over certain thresholds outlined by BIS. The rule also expands the scope of the agency’s forteign direct product rule to cover more items and 28 existing Chinese entities on the Entity List.

The new restrictions on advanced semiconductor manufacturing items take effect Oct. 7, while other restrictions on “U.S. persons’ ability to support the development, production, or use of” integrated circuits at certain China-based chip facilities take effect Oct. 12. Other restrictions, including the rule’s advanced computing and supercomputer controls, take effect Oct. 21. Public comments on the changes are due (DATE TK TK TK)