E Point Perfect
Law \ Legal

OVERVIEW OF U.S. NEW EXPORT CONTROL RULES ON SEMICONDUCTOR


Authored by: Lou Xianying (Cecilia) , Dai Menghao , Yao Shuang and Ran Fuyan

On October 7, 2022, the Bureau of Industry and Security (“BIS”) under U.S. Department of Commerce announced a series of new export control rules against China under the Export Administration Regulations (“EAR”). The new regulations involve the addition, adjustment, or update, of multiple Export Control Classification Numbers (“ECCNs”), three foreign-direct product (FDP) rules, two restrictions on end users and end uses, 31 Unverified List (“UVL”) and a mechanism for transferring a party from the UVL to the Entity List. This is the largest revision to the EAR since 28 April 2020. From relevant regulations and business practices, its impact on Chinese enterprises is far greater than the revisions to the rules related to China’s military end-users and military end uses that made on April 28, 2020. In particular, according to the announcement on the revision, the new regulations obviously target the advanced computing chips and supercomputers to comprehensively restrict China’s semiconductor industry, especially its ability to build domestic advanced process. Furthermore, given the close ties between the semiconductor industry and other related sectors, the impact is expected to spread to smart cars, data centers, and cloud computing, among others. In this article, we will, based on our years of experience on U.S. export control policies, discuss the possible impact of the revision on Chinese enterprises, hoping that they can have a clear understanding of the new regulations and make a correct judgment in their development.

Read More



Source link

Related posts

Blog Post May 2015 and News July 2022

Earn-out consideration under a scheme of arrangement

Be Careful What You Email – You Could Be Entering Into a Settlement Agreement!

Causes of E-Bike Fires and What to Do When They Happen

16-year-old teenager sues Bellevue Cheer Coach molester

Irish agency warns of risk from Salmonella in duck eggs