The U.S. Department of Commerce's Bureau of Industry and Security Implements New Controls to Restrict U.S. Persons from Supporting the Development or Production of Advanced Integrated Circuits in China.

2024-09-24 22:46:46

On October 7, 2022, the U.S. Department of Commerce's Bureau of Industry and Security ("BIS") issued an interim final rule ("Rule") imposing additional export controls on advanced computing and semiconductor manufacturing items. Specifically, among other provisions, the Rule restricts U.S. persons from supporting the development or production of integrated circuits at semiconductor manufacturing facilities located in China without obtaining a license. On October 28, 2022, BIS published a Frequently Asked Questions (FAQ) document clarifying that the restricted activities of U.S. persons under Section 744.6(c)(2) include: (i) authorizing the shipment, transmission, or (in-country) transfer;

(ii) facilitating the shipment, transmission, or (in-country) transfer; or

(iii) providing services, including maintenance, repair, servicing, or refurbishing, to items not subject to the EAR at semiconductor manufacturing facilities located in China, with "knowledge" that the items will be used for the "development" or "production" of integrated circuits at such facilities. Additionally, the advanced integrated circuits being manufactured must meet the criteria outlined in Sections 744.6(c)(2)(i)(A)-(C) of the EAR, namely:

(A) Logic integrated circuits using non-planar transistor architectures or with a "production" technology node of 16/14 nanometers or below;

(B) NOT-AND (NAND) memory integrated circuits with 128 layers or more; or

(C) Dynamic random-access memory (DRAM) integrated circuits using a "production" technology node of 18 nanometers half-pitch or smaller.

The controls outlined in the Rule took effect on October 12, 2022. BIS will continue to accept public comments on the Rule and, after reviewing these comments, will issue a final rule at a future date addressing the feedback received.