BIS to Release Updated China Chip Controls, Adds to Entity List
The Bureau of Industry and Security today will release a range of updates to its 2022 China chip rule, including new restrictions on several dozen additional chip tools and related items, updated export control parameters for chips used in artificial intelligence applications, a novel notification requirement for certain “gray-zone” chips that fall just below that updated threshold, a new license requirement for chip exports to companies headquartered in nations subject to a U.S. arms embargo and more. BIS also added 13 Chinese companies to the Entity List, effective Oct. 17, for developing advanced chips in ways BIS said are contrary to U.S. national security.
The updates are “really focused” on closing loopholes, addressing new “technical developments” in semiconductors and monitoring implementation of the 2022 rule, a senior administration official said during an Oct. 16 call with reporters. Commerce Secretary Gina Raimondo, also speaking during the call, said the updates are “specifically designed to control access to computing power, which will significantly slow” China’s development of “next generation frontier” AI technology. She also said the administration plans to update the rules annually to make sure they’re keeping pace with innovation and so the U.S. can address circumvention efforts.
The rule also includes a specific carve-out for certain consumer chips that the Biden administration has deemed don’t pose national security risks, such as semiconductors used in gaming, phones, electric vehicles and laptops. It also “refines and better focuses” the U.S. persons restrictions included in the 2022 rule to have “maximum impact” on preventing the transfer of U.S. technical knowhow to Chinese chip companies, an official said, along with other changes.
The rule will include varying effective dates for some of the new controls, with portions of the rule taking effect 30 days after publication in the Federal Register and some taking effect sooner. The rule will also solicit public comments on some of the new updates and other chip export control issues.