The Bureau of Industry and Security is gearing up to issue a set of corrections and clarifications to rules it released in October for advanced computing chips and chipmaking tools (see 2310170055), a Commerce Department official said March 28.
The Bureau of Industry and Security has no immediate plans to try to require companies to monitor their sensitive chip-related exports through location tracking or other hardware, BIS officials said this week, suggesting that the technology needs to be studied more.
The Bureau of Industry and Security on March 29 released an interim final rule to update, correct and clarify its October 2023 chip controls that placed new restrictions on exports of advanced semiconductors and semiconductor manufacturing equipment to China. The 186-page rule takes effect April 4 and seeks public comments on the changes by April 29.
The head of the Bureau of Industry and Security this week called on companies to double down on their export compliance and due diligence efforts, saying the agency is reaching out to exporters to make sure they’re catching red flags and monitoring for possible export control evasion.
The U.S. is pushing foreign governments to stop their semiconductor companies from servicing certain advanced chip tools under pre-existing contracts with Chinese customers, Bureau of Industry and Security Undersecretary Alan Estevez said.
Lisa Su, CEO of American chip company AMD, met with Chinese Commerce Minister Wang Wentao to discuss semiconductor supply chain issues, China’s Ministry of Commerce said in a news release, according to an unofficial translation. The Chinese minister stressed that “the development of the semiconductor industry requires global cooperation,” adding that Beijing hopes the “United States and China will work together to provide companies with clear security boundaries and stable expectations.” Su during the meeting said China “is one of the focuses of AMD's global strategy,” the release said. “The company will continue to increase investment in China and work with local partners to provide better products and services for the Chinese market.” An AMD spokesperson didn't comment.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The omission of funding for outbound investment restrictions in the recently enacted Further Consolidated Appropriations Act of 2024, or second minibus, is designed to prevent the Biden administration from blocking U.S. investors from taking over Chinese companies, the House Appropriations Committee said last week.
The Bureau of Industry and Security recently completed a round of interagency review for a final rule to make tweaks, clarifications and corrections to its recent chip export control updates released in October (see 2310170055). BIS sent the correction rule to the Office of Information and Regulatory Affairs Nov. 27 (see 2311280005), and the review was completed March 21. BIS has said the agency is looking to clarify several issues that exporters have raised since the controls were updated and correct other provisions that “may not have fully hit the mark we intended” (see 2311060067, 2311160044 and 2401260051).
The Census Bureau this week alerted export filers about two new license codes in the Automated Export System for License Exception Notified Advanced Computing (NAC), the exception introduced last year by the Bureau of Industry and Security for certain exports of semiconductors that fall just below the agency’s most recently updated chip control parameters (see 2311200042 and 2401030053). Companies using the license exception and exporting certain chips must submit notifications to BIS with data about the chip, including its total processing performance, the name of the exporter and other parties to the transactions, and the volume and value of the shipment.