United States of America: Closed consultation on Controls Related to Advanced Computing and Semiconductor Manufacturing Rules including export licensing requirements

On 31 January 2023, the public consultation on the Commerce Department Bureau of Industry and Security (BIS) rule entitled "Implementation of Additional Export Controls: Certain Advanced Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use", closed. The deadline for submitting comments was extended on 7 December 2022 from 12 December to 31 January 2023. 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.