All researchers who work with advanced computing chips, supercomputers, semiconductors, or integrated circuits – AND have any connection with China related to the foregoing subject areas, are likely impacted by these new rules.
On October 7, 2022, the Department of Commerce announced series of new export controls on advanced computing and semiconductor manufacturing items. While the new export controls are largely targeted at the People’s Republic of China, including Macau and Hong Kong, (collectively “PRC”), the breadth and scope extend beyond the PRC. The controls are intended to restrict the PRC’s ability to obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors. In addition, the new rules make clear that foreign government actions that prevent the U.S. from making compliance determinations will impact certain foreign companies’ access to U.S. technology.
Actions: Per Policy 4.22, all international shipments must be approved by the Export Control Office. In addition, if you work with advanced computing chips, supercomputers, semiconductors, or integrated circuits – AND have any connection with the PRC related to the foregoing subject areas, please contact the Export Control Office to determine the implications of the new rules.
A few of the highlights of the new rule:
- Adds certain advanced and high-performance computing chips and computer commodities that contain such chips to the Commerce Control List (CCL) - meaning a license will likely be required.
- Adds new license requirements for items destined for a supercomputer or semiconductor development or production end use in the PRC.
- Expands the scope of the Export Administration Regulations (EAR) over certain foreign-produced advanced computing items and foreign produced items for supercomputer end uses.
- Adds certain semiconductor manufacturing equipment and related items to the CCL – meaning a license will likely be required.
- Adds new license requirements for items destined to a semiconductor fabrication facility in the PRC that fabricates integrated circuits. Licenses for facilities owned by PRC entities will face a “presumption of denial,” and facilities owned by multinationals will be decided on a case-by-case basis.
- Restricts the ability of U.S. persons to support the development, or production, of integrated circuits at certain PRC-located semiconductor fabrication facilities without a license. *Note that support could include certain fundamental research efforts*
- Adds new license requirements to export items to develop or produce semiconductor manufacturing equipment and related items.
No license exceptions (including for temporary travel) will be available for certain integrated circuits and other items described in this new rule (including associated software and technology) when destined to the PRC.
The following actions are likely prohibited without an export license (please check with the Export Control Office):
- Shipping, transmitting, or transferring to or within the PRC; facilitating the shipment, transmission, or transfer to or within the PRC; or servicing (anywhere), any item that you know will be used in the development or production of integrated circuits at a semiconductor fabrication facility located in the PRC that fabricates integrated circuits meeting any of the following criteria:
- Logic integrated circuits using a non-planar architecture or with a “production” technology node of 16/14 nanometers or less;
- NOT-AND (NAND) memory integrated circuits with 128 layers or more; or
- Dynamic random-access memory (DRAM) integrated circuits using a “production” technology node of 18 nanometer half-pitch or less.
- Shipping, transmitting, or transferring to or within the PRC; facilitating the shipment, transmission, or transfer to or within the PRC; or servicing, any item that you know will be used in the development or production of integrated circuits at any semiconductor fabrication facility located in the PRC, but you do not know whether such semiconductor fabrication facility fabricates integrated circuits that meet any of the criteria in 1.) above.
- Shipping, transmitting, or transferring to or within the PRC any item; facilitating the shipment, transmission, or transfer to or within the PRC of any item; or servicing any item located in the PRC, that you know will be used in the development or production of integrated circuits at any semiconductor fabrication facility located in the PRC, regardless of end user.
- Exporting any item when you have knowledge that the item will be used in the development, production, use, operation, installation, maintenance, repair, overhaul, or refurbishing of a “supercomputer” located in or destined to the PRC.
- Exporting any item when you have knowledge that the item will be incorporated into, or used in the development, or production, of any component or equipment that will be used in a “supercomputer” located in or destined to the PRC.
- Exporting any item when you have knowledge that the item will be used in the development or production in the PRC of any parts, components, or equipment as follows: equipment for the manufacturing of semiconductor devices or materials; test equipment for testing finished or unfinished semiconductor devices; test, inspection and production commodities for military electronics; other equipment for the manufacture of electronics parts, components, and materials; or other equipment for the inspection or testing of electronic components and materials.
*No license exceptions are available for the activities above
*There is a presumption of denial for any license applications made for the activities above
Many entities in the PRC (including universities) are being added on a rolling basis to restricted parties lists administered by Department of Commerce. As a result, heightened due diligence is necessary when dealing with parties in the PRC. Contact the ECO for a screening of foreign parties (particularly in the PRC) that you wish to collaborate or otherwise deal with.