United States of America: Issued rule on Controls Related to Advanced Computing and Semiconductor Manufacturing including export restrictions

On 7 October 2022, the United States Commerce Department Bureau of Industry and Security (BIS) adopted a rule entitled "Implementation of Additional Export Controls: Certain Advanced Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; Entity List Modification Interim Final Rule". The rule includes export licencing requirements that restrict sharing information and export technology related to semiconductors to China and other foreign companies. Firstly, the rule requires entities to obtain a licence to export technological goods used for developing and producing supercomputers and semiconductor manufacturing equipment in China. Secondly, it broadens the licencing requirements for foreign-produced items, obliging the twenty-eight entities established in China producing supercomputers to obtain a license. Thirdly, the rule includes a new license requirement for components used in the Chinese industrial plants fabricating semiconductors. The licences for industrial plants fabricating semiconductors owned by entities owned by China "will face a presumption of denial," and the ones owned by multinationals are going to be decided on a "case-by-case basis". Finally, the rule specifies that persons from the United States will have to obtain a licence if they want to support the development and production of advanced computing integrated circuits at industrial plants in China. The requirement for an investment licence comes into force on 12 October 2022, and the licencing requirement related to advanced computing and supercomputer controls becomes effective on 21 October 2022.