Get all your questions answered about the new U.S. export controls on the export of items for supercomputers + semiconductors + Entity List changes. Learn how these restrictions impact U.S. and non U.S. businesses.
The United States has imposed stricter restrictions on the export of American semiconductors, ostensibly aimed at curbing China's progress in supercomputing and semiconductor progress. The new controls are expected to prevent the majority of US semiconductor shipments from reaching Chinese data centres, where they are used to build AI models.
Why are these export controls necessary?
The officials of the United States are aiming to limit China's access to advanced semiconductors that could be utilized for the development of artificial intelligence and sophisticated computers, which may be used for military purposes. The U.S. government believes that controlling the technology is crucial for national security. They fear that if China's military gains access to such cutting-edge technology, it may use it to steer hypersonic missiles, install sophisticated surveillance systems, or decode highly confidential U.S. codes.
What is the effect of these sanctions?
American companies that export advanced technology chips or equipment to China must obtain a special license or government notification. In addition to this, chip producers must acquire trade licenses for numerous countries that are subject to US arms embargoes, to prevent China from obtaining advanced US chips through unaffiliated countries.
Who is affected by these new export controls?
These new export controls may affect Nvidia, AMD, and Intel companies.
According to U.S. officials, these export controls will not apply to processors used in commercial applications like gaming systems, laptops, telephones, and electric automobiles.
When will the new export controls enter into effect?
Some legislation will take effect sooner, but most in 30 days.
The Biden administration has invested extensively in US semiconductor makers to counter China's growing dominance over cutting-edge technology. In parallel, it has been trying to allow unlimited trade with other nations while restricting military technology exports to China. U.S. authorities aim to "protect American technology with a small yard and high fence."
More Information and Links
1) U.S. Update to "Semiconductor Manufacturing Items to China" Export Control Rules
Detailed analysis of the EAR changes to U.S. Export Controls and how they impact semiconductor manufacturing items exported to China.
2) U.S. Update to "Advanced Computing to China" Export Control Rules
Detailed analysis of the EAR changes to U.S. Export Controls and how they impact supercomputer items exported to China + links to the Federal Register
3) U.S. Export Controls: 13 Entity List Additions - Advanced Computer & Semiconductor
Discover the latest U.S. export control updates and how they impact advanced computer and semiconductor manufacturing items by placing 13 companies on the U.S. EAR Entity List.
4) BIS Webinar on Supercomputer + Semiconductor EAR Rule Change
Join the BIS EAR webinar to learn more bout the changes to the EAR in a webinar by BIS. Details here.
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