Articles Posted in Semiconductors

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On January 13, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued an Interim Final Rule (IFR), establishing new export controls targeting advanced artificial intelligence (AI) chips and model weights for advanced AI models to protect against national security risks associated with AI while promoting American AI technological leadership. This framework is a tailored strategic initiative designed to regulate the spread of advanced AI models and prevent their access by malicious actors. It enables “secure and responsible foreign entities and destinations” to utilize leading U.S. AI models and the powerful IC clusters needed for their training. Entities that do not comply with established safety and security protocols will not be granted access.

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On January 15, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) released an interim final rule (IFR) updating export controls on advanced computing semiconductors. This IFR seeks to ensure that customers of “front-end fabricators” and Outsourced Semiconductor Assembly and Test (OSAT) companies cannot evade controls on advanced computing ICs by misrepresenting the performance capabilities of their integrated circuit (IC) designs.

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On September 5, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued an interim final rule imposing significant new export controls on quantum computing, cryocooling systems, semiconductor equipment, and additive manufacturing technologies. These controls are meant to align U.S. regulations with recent regulations adopted by several close U.S. allies and are intended to address national security concerns related to the proliferation of sensitive technologies. BIS is currently accepting comments on the interim final rule until November 5, 2024.

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On March 29, 2024, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) issued an interim final rule (“2024 IFR”) clarifying and correcting its October 2023 interim final rules on advanced computing/supercomputers (AC/S IFR) and semiconductor manufacturing equipment (SME IFR) (collectively called the “2023 IFRs”).

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In 2023 and the early months of 2024, there has been a flurry of agency activity to implement key programs enacted under the CHIPS and Science Act—directing benefits to the semiconductor industry.

In “Reviewing Key CHIPS Act Implementation Milestones to Deliver Opportunities for the Semiconductor Supply Chain,” Nancy A. Fischer, Aimee P. Ghosh and Amaris Trozzo take stock of the many moving parts—from funding rounds and investment announcements to key discussions taking place—in play during this window of opportunity.

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In 2023, the United States sharpened its focus on deterring China’s ability to develop advanced technology with the potential to threaten U.S. national security. To do so, the U.S. government has implemented several new restrictions and requirements related to critical technologies. Some of these measures, such as the announcement of an outbound investment regime, are entirely new tools. Others, like updates to semiconductor related export controls and newly sanctioned entities, build on existing regimes.

Below, we outline several of the key developments aimed at restricting China’s technology sector which U.S. and multinational businesses should remain aware of. Continue reading →

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2023 witnessed significant developments from the United States government aimed at countering China’s influence and curbing potential threats to U.S. national security. These developments have spanned legislative and administrative action, shifting long-standing paradigms within export controls, import controls, and sanctions. The Biden Administration is increasingly utilizing these tools as strategic elements of foreign policy, often in conjunction with allied nations.

The restrictions on trade with China are rapidly evolving and increasingly nuanced, influenced by growing Congressional attention on the U.S.-China relationship, increased pressure on the Department of Commerce, and international interest in upholding strong supply chains. For companies to navigate these tensions, they must remain well-informed regarding the myriad of regulations which have been imposed in the past year.

This post is the first in a series dedicated to highlighting notable developments in the sanctions and export controls realm targeting China. This series will span across three sectors in which our team has been notably engaged: technology, energy, and supply chain resiliency. The final blog in the series will forecast expected developments through 2024.

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https://www.globaltradeandsanctionslaw.com/files/2023/11/1200px-US-DOC-BureauOfIndustryAndSecurity-Seal.svg_-300x300.pngOn November 6, 2023, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) held a public briefing to address industry questions concerning the latest export controls on advanced computing and semiconductor manufacturing. The new controls, which BIS announced on October 17, 2023, update existing export restrictions related to advanced computing and semiconductor manufacturing equipment. The public briefing did not provide substantive updates to the October 17 announcements but offered context and indicated where BIS intends to issue additional guidance.

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