New Export Controls Target Support for China’s Advanced Computing and Semiconductor Manufacturing

Key Notes:

• The Rule restricts exports to China of high-end chips and semiconductor manufacturing equipment, including foreign made items that are the product of U.S. technology.
• The Rule restricts the export of a wide range of items that would support certain supercomputing or integrated circuit production end-uses in China. In some circumstances, any item subject to the EAR is restricted.
• Specific activities of U.S. persons that support the development or production of certain integrated circuits in China will be prohibited without a license.

On October 7, 2022, the Department of Commerce’s Bureau of Industry and Security (BIS) issued an Interim Final Rule (the “Rule”) implementing additional export controls on advanced computing integrated circuits (ICs), computer commodities that contain such ICs and certain semiconductor manufacturing items.

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