The Bureau of Industry and Security (BIS) has again expanded its U.S. export controls on chips. This new update, announced December 2, 2024, is related to the October 2022 interim final rule (IFR) aimed to restrict China’s ability to both purchase and manufacture certain high-end semiconductors critical for military applications.

What is included in this new update:

• The expansion of controls on tools that produce advanced-node integrated circuits: deposition, lithography, ion implantation, annealing, metrology, inspection and cleaning.
  
  
• New controls on the export of U.S and foreign made High Bandwidth Memory (HBM), which is critical for AI applications. In addition, BIS has announced the creation of the new license exception HBM for certain related exports.
  
  
• The expansion of controls on advanced-node integrated circuit development and manufacturing software, including software to increase productivity or upgrade inferior production equipment. Additionally, there are new controls on exports regarding Electronic Computer Aided Design (ECAD) and Technology Computer Aided Design (TCAD) software and technology destined for Macau or Group D:5 countries.
  
  
• The addition of 140 new entities and 14 modifications to the Entity List related to the semiconductor industry.
  
  
• Establishment of 2 new Foreign Direct Product (FDP) rules including de minimis provisions.
  
  
• The addition of clarifying language to existing controls related to semiconductor production software keys which allow access to the use of specific hardware or software or renewal of existing software and hardware use licenses.

These updates are now in effect with a delayed compliance date of December 31, 2024, for certain controls. Read the official press release here: Commerce Strengthens Export Controls - BIS

If you have questions or concerns about how these new rules affect your business, please contact Tradewin for help.