The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has introduced new export controls.
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has introduced new export controls aimed at curbing China’s ability to produce advanced semiconductors critical for military applications, artificial intelligence, and advanced computing. Key highlights of the announcement include:
Expanded Controls:
Restrictions on 24 types of semiconductor manufacturing equipment and 3 software tools used in producing advanced chips.
New rules on high-bandwidth memory (HBM), essential for AI and advanced computing.
Licensing requirements for certain advanced-node integrated circuits and their production tools.
Entity List Updates:
Addition of 140 entities, including Chinese semiconductor manufacturers and investment firms aiding military modernization.
Establishment of two new Foreign Direct Product (FDP) rules extending U.S. jurisdiction over certain foreign-produced items tied to listed entities.
Regulatory Enhancements:
Clarification of rules governing software keys and restrictions on design software for advanced semiconductors.
Tightened de minimis thresholds for foreign products containing U.S.-origin components.
Strategic Objectives:
Impairing China’s ability to indigenize semiconductor production and develop military AI.
Addressing risks posed by China’s Military-Civil Fusion strategy and preventing misuse of U.S. technology.
Geopolitical Context:
The measures align with the Biden-Harris Administration’s "small yard, high fence" strategy to protect U.S. technology.
This action follows previous BIS efforts in 2022, 2023, and 2024 to restrict China’s access to advanced technologies.
The overarching goal is to hinder China's progress in advanced semiconductor capabilities while safeguarding U.S. and allied national security. The actions are a response to the evolving geopolitical and technological threats posed by China’s military ambitions and its strategy to dominate critical technology sectors.
