Industry News

New Export Controls on Advanced Computing and Semiconductor

Oct. 11, 2022
By: Marvin E. McPherson

BIS published an interim final rule October 7, 2022. The rule implements controls on advanced computing integrated circuits (ICs), computer commodities that contain such ICs, and certain semiconductor manufacturing items.

The current expected FR publication date is Oct. 13 with the comment period running through December 12.

Additionally, the rule expands controls on transactions involving items for supercomputer and semiconductor manufacturing End Uses. The rule also implements a license requirement for specific activities of “U.S. persons” that “support” the “development” or “production” of certain ICs in the Peoples Republic of China.

The rule in part:

(1) Adds certain advanced and less advanced computing chips and computer commodities that contain such chips to the Commerce Control List (CCL);

(2) Adds new license requirements for items destined for supercomputer and semiconductor end use in China;

(3) Expands the scope of foreign-produced advanced computing items and foreign produced items for supercomputer end uses subject to the EAR;

(4) Expands the scope of foreign-produced items subject to license requirements for twenty-eight existing entities on the Entity List that are located in China;

(5) Adds certain semiconductor manufacturing equipment to the CCL;

(6) Adds new license requirements for items destined to a semiconductor fabrication “facility” in China that fabricates ICs meeting specified criteria;

(7) Adds new license requirements for items used in the “development” or “production” of semiconductor manufacturing equipment and related items in China; and

BIS is establishing a Temporary General License to permit specific, limited manufacturing activities in China related to items destined for use outside China.

Important dates:

·       10/07/2022: Public Display/Effective date (semiconductor manufacturing items)

·       10/11/2022: Questions/comments must be submitted to BIS for Public Hearing

·       10/12/2022: Effective date of “U.S. person” controls rule

·       10/13/2022: Publication in the Federal Register

·       10/21/2022: Effective date of Integrated Circuit and “Supercomputer” controls

·       12/12/2022: Public comments due.

·       04/07/2023: Expiration date of Temporary General License

BRC will be attending the upcoming public hearing and we will be tracking as the final rule moves along. Please reach out to any of our attorneys if you have any questions.