BIS Unveils New Semiconductor Rules Against China

On Dec. 2, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced a new set of rules strengthening export controls to restrict China's capability to produce advanced semiconductors for military applications. The new set of rules is designed to achieve two primary national security objectives.

First, the new rules aim to slow China's development of advanced artificial intelligence, which has the potential to change the future of warfare. Second, they restrict China's development of an indigenous semiconductor ecosystem. To achieve these objectives, BIS is implementing several regulatory measures, including:

• New controls on semiconductor manufacturing equipment used to produce advanced-node integrated circuits
• New controls on software tools for developing or producing advanced-node integrated circuits
• New controls on high-bandwidth memory (HBM)
• Addition of 140 entities to the Entity List, in addition to 14 modifications
• Establishment of two new Foreign Direct Product (FDP) rules and corresponding de minimis provisions
• New software and technology controls,includingrestrictions onelectronic computer aided design (ECAD) and technology computer aided Design (TCAD) software and technology
• Clarification to the EAR regarding existing controls on software keys

These rules are available on the Federal Register's website here and here. The rules became effective Dec. 2, 2024, with a delayed compliance date of Dec. 31, 2024, for certain controls. Public comments can be submitted on the Interim Final Rule.

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