The Semiconductor Industry Association (SIA) called on the Bureau of Industry and Security April 15 to “rethink” its "flawed" interim final rule on artificial intelligence diffusion, saying the computing chip-related export controls are so complicated and far-reaching that they will harm the long-term international competitiveness of the U.S. semiconductor industry.
The first few weeks of Undersecretary Jeffrey Kessler’s tenure at the Bureau of Industry and Security have been defined by industry uncertainty and skepticism toward career government and business officials, industry members and BIS staff said.
Landon Heid, President Donald Trump’s nominee to be assistant secretary of commerce for export administration (see 2502120020), said April 10 that he wants the Bureau of Industry and Security to wage a “continuous battle every single day” to prevent China from obtaining restricted U.S. technology.
Exporters and other companies could start seeing an uptick in government subpoenas as the Bureau of Industry and Security looks to increase export penalties, industry officials said this week, adding that businesses should make sure they’re scrutinizing transactions and watching for red flags.
Taiwan Semiconductor Manufacturing Company may face a fine of up to $1 billion or more if the Commerce Department determines it violated U.S. export control laws against Huawei, Reuters reported April 8. The Bureau of Industry and Security has reportedly been investigating the chip company after one of its chips was found in a Huawei product (see 2411120011 and 2410230019), and Reuters said Commerce could reach a $1 billion penalty because export control regulations allow the agency to issue a fine of up to twice the value of transactions that violate the rules. Reuters said it "could not determine how the Trump administration will proceed with TSMC or when the matter would be resolved."
Members of the Bureau of Industry and Security's Materials and Equipment Technical Advisory Committee were asked during their April 3 meeting to sign or re-sign non-disclosure agreements as Trump administration officials review how the TACs operate.
The Bureau of Industry and Security reinstated a pause on export license applications last week, four people with knowledge of the situation said, days after officials announced at the agency’s March update conference that licensing was expected to soon return to normal.
Four Democratic lawmakers said this week that the Bureau of Industry and Security’s plans to pull back from traditional export control dialogues with allies, including the U.S.-EU Trade and Technology Council, will reduce international collaboration and make it harder to keep sensitive technology out of the hands of China.
The Bureau of Industry and Security is ending its work in the U.S.-EU Trade and Technology Council as part of a broader effort to pull back from traditional export control dialogues with allies, Jeffrey Kessler, the head of BIS, said in a closed-door meeting with agency officials last week. Kessler also said the agency plans to significantly increase export enforcement against China, warned about possible staffing cuts, urged officials to tamp down on conversations with industry, and said it’s unclear whether existing export controls against Russia will be maintained.
The Bureau of Industry and Security is adding 82 entities, mostly in mainland China, to the Entity List, targeting technology companies, chip firms, electronics businesses and others for their ties to Chinese military end-users. The additions, the first since President Donald Trump took office in January, also target entities in Taiwan, Pakistan, the United Arab Emirates, South Africa and Iran for a range of reasons that BIS said are “contrary to the national security and foreign policy” of the U.S.