BIS to Issue New Controls on Foreign Chip Tool Exports to China, Report Says

A new U.S. rule expected this month could expand restrictions on foreign exports of certain chip equipment to China but exclude chipmakers in the Netherlands, Japan and South Korea, Reuters reported July 31.

The report said the move would expand U.S. foreign direct product rule restrictions to block Chinese fabs from buying advanced semiconductor manufacturing equipment if that equipment were made with certain U.S.-origin software or technology. The rule could affect exports from Israel, Taiwan, Singapore and Malaysia, the report said, but it would exclude major chip tool manufacturers ASML, Tokyo Electron and possibly others.

A Commerce Department spokesperson said in a July 31 email that the agency is "continually assessing the evolving threat environment and updating our export controls, as necessary, to protect U.S. national security and safeguard our technological ecosystem. We remain committed to working closely with our allies who share our values."

The report comes days after Sen. Chris Van Hollen, D-Md., questioned a senior Bureau of Industry and Security official about whether the agency was considering using its foreign direct product rule to impose more license restrictions on foreign exports of advanced chipmaking equipment to China (see 2407250054).