New Export Controls Target China’s Semiconductor Industry

In an effort to restrict China’s ability to purchase and manufacture advanced computing chips, the Bureau of Industry and Security (BIS) issued an interim final rule implementing additional controls on advanced computing integrated circuits (ICs), computer commodities that contain such ICs, and certain semiconductor manufacturing items. 

Through this new rule, BIS is:

1. Expanding end use and end user controls for supercomputer and semiconductor manufacturing items located or destined to China.
2. Adding prohibitions to the entity list, specifically for 28 Chinese entities.
3. Expanding scope of foreign produced items that will require a license.
4. Adding new ECCNs and new ECCN paragraphs to the Commerce Control List.

 

New ECCN	Description
3A090	High-performance ICs
4A090	Specified computers, electronic assemblies, and certain components containing 3A090
4D090	Software associated with the items controlled in 4A090
3B090	Software and technology controls under 3D001 and 3E001
New Paragraph	Description
3A991.p	High-performance ICs
4A991.l	Computers, electronic assemblies not elsewhere specified containing ICs in 3A991.p

 

BIS is also adding new restrictions on activities of U.S. persons that support the development or production of certain ICs in China. A license will be required for U.S. persons to support the production of the most advanced semiconductors necessary for miliary programs of concern. Per this rule, support is defined as shipping, transmitting, transferring (in-country), or facilitating such shipment, transmission, or transfer of any restricted item to or within China, or servicing any such item.

However, BIS is establishing a Temporary General License to avoid supply chain disruptions for items ultimately destined to customers outside of China.

If you have any questions about these export control changes, or to get more info on how it might impact your business, please contact Allyn at sales@allynintl.com.

Contributor: Matthew Dreckman

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