The more than $140 million U.S. penalty levied on California chip firm Cadence in July (see 2507290026) is the latest signal that companies should prepare for increasingly "aggressive" export control enforcement, especially for violators of technology controls against China, law firms said. One firm said it shows that the government expects companies to provide access to business information located in China -- even if that may violate China’s anti-foreign sanctions laws -- while another firm said it highlights the challenges companies face when determining whether a customer is a front company for a party on the Entity List.
The future effectiveness of U.S. export controls will depend on which technologies the government targets, how it collaborates with allies, and how well the U.S. is able to resource the Bureau of Industry and Security, said Navin Girishankar and Matt Borman of the Center for Strategic and International Studies.
Citing national security and legal concerns, seven Democratic lawmakers called on the Trump administration Aug. 15 to reverse its decision to allow Nvidia and AMD to sell certain controlled computing chips to China in exchange for a portion of their sales revenue.
Applied Materials, the largest American semiconductor equipment supplier, is expecting a drop in its China sales due to uncertainty around U.S. export controls and its high volume of pending license applications, executives said last week.
The Republican-led House Select Committee on China said Aug. 14 that a new trade agreement the Trump administration is negotiating with China should contain or exclude certain provisions to protect U.S. economic and national security.
Malaysia's July export license mandate for shipments of U.S.-origin advanced AI semiconductors could be a precursor to the U.S. carving out Malaysia from upcoming rules on advanced chip exports, a former Bureau of Industry and Security official said.
Treasury Secretary Scott Bessent this week echoed earlier comments from the White House that said the administration is open to expanding its Nvidia and AMD revenue-sharing export arrangements to other companies or industries (see 2508120049). He said the U.S. is OK negotiating export controls over Nvidia’s H20s chips because they present no national security issues.
Two Republican lawmakers gave different views Aug. 12 on the Trump administration’s decision to allow Nvidia and AMD to sell certain controlled chips to China in exchange for a portion of their sales revenue (see 2508110044).
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The Trump administration may consider expanding the revenue-sharing arrangements that it reached with Nvidia and AMD to other U.S. companies, the White House said this week.