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BIS Published Advanced Computing Rule to Restrict U.S. Person Activities of Supporting Development or Production of Advanced ICs in the PRC

October 7, 2022

On October 7, 2022, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) published an Interim Final Rule (the “Rule”), which imposed additional export controls on advanced computing and semiconductor manufacturing items.
 
Specifically, the Rule, among other things, restricts the ability of U.S. persons to support the development, or production, of ICs at certain PRC-located semiconductor fabrication “facilities” without a license. On October 28, 2022, BIS published a FAQ for the Rule, stating the U.S. persons control in § 744.6(c)(2) applies to persons who: (i) authorize the shipment, transmittal, or in-country transfer (in-country); (ii) conduct the delivery, by shipment, transmittal, or transfer in-country; or (iii) service, including maintaining, repairing, overhauling, or refurbishing of items not subject to the EAR used in the “development” or “production” of integrated circuits to fabrication facilities in the PRC that fabricate integrated circuits (IC) meeting the criteria specified in §744.6(c)(2)(i)(A)-(C) of the EAR, including:
 
(A)       Logic integrated circuits using a non-planar architecture or with a “production” technology node of 16/14 nanometers or less;
(B)       NOT-AND (NAND) memory integrated circuits with 128 layers or more; or
(C)       Dynamic random-access memory (DRAM) integrated circuits using a “production” technology node of 18 nanometer half-pitch or less.
 
The Rule relating to the restrictions outlined above became effective on October 12, 2022. BIS will continue to accept public comments on the Rule and, after reviewing those comments, will publish a final rule that will respond to the comments at a future date.

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