The U.S. Department of Commerce’s Bureau of Industry and Security announced a package of export control rules on December 2, 2024, targeting the People’s Republic of China’s ability to produce advanced-node semiconductors for military applications and artificial intelligence. The rules add controls on 24 types of semiconductor manufacturing equipment, 3 types of semiconductor development software, and high-bandwidth memory, while placing 140 entities — including PRC tool manufacturers, semiconductor fabs, and investment companies — on the Entity List and modifying 14 existing entries.
What it means
The rules establish two new Foreign Direct Product rules — the Semiconductor Manufacturing Equipment FDP and the Footnote 5 FDP — that extend U.S. jurisdiction over foreign-produced semiconductor manufacturing equipment destined for Macau or Country Group D:5, which includes the PRC, when there is knowledge of that destination or of involvement by a designated entity. A de minimis provision extends that jurisdiction to foreign-produced equipment containing any amount of U.S.-origin integrated circuits. New controls on ECAD and TCAD software apply when there is knowledge the items will be used for advanced-node integrated circuit design in Macau or Country Group D:5. Export controls are also clarified to cover software keys. A new License Exception HBM is created for certain high-bandwidth memory, while HBM controls apply both to U.S.-origin HBM and to foreign-produced HBM subject to the Export Administration Regulations under the existing advanced computing FDP rule.
“The purpose of these Entity List actions is to stop PRC companies from leveraging U.S. technology to indigenously produce advanced semiconductors,” said Matthew S. Axelrod, Assistant Secretary for Export Enforcement. Secretary of Commerce Gina Raimondo said the action is “the culmination of the Biden-Harris Administration’s targeted approach, in concert with our allies and partners, to impair the PRC’s ability to indigenize the production of advanced technologies that pose a risk to our national security.”
Key facts
- 24 types of semiconductor manufacturing equipment newly placed under export controls
- 3 types of software tools for developing or producing semiconductors newly controlled
- High-bandwidth memory (HBM) added to controlled items; new License Exception HBM created for certain HBM
- 140 entities added to the Entity List, spanning PRC tool manufacturers, semiconductor fabs, and investment companies
- 14 modifications made to existing Entity List entries
- Two new Foreign Direct Product rules established: Semiconductor Manufacturing Equipment FDP and Footnote 5 FDP
- De minimis provision covers foreign-produced SME containing any amount of U.S.-origin integrated circuits
- ECAD and TCAD software controls apply when items are destined for advanced-node IC design in Macau or Country Group D:5
- Export controls clarified to apply to software keys
- Announcement date: December 2, 2024
Source: U.S. Department of Commerce, Bureau of Industry and Security news release (bis.gov)