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New US Commerce Rules Target Semiconductor Manufacturing Equipment Export to China

New US Commerce Rules Target Semiconductor Manufacturing Equipment Export to China

The U.S. Department of Commerce’s Bureau of Industry and Security has introduced new rules to prevent China from accessing U.S.-made semiconductor manufacturing equipment and software tools that can advance its weapon systems and artificial intelligence and computing capabilities for military applications.

The bureau said the rule package also includes controls on high-bandwidth memory, new red flag guidance to address compliance and diversion concerns, 140 Entity List additions and 14 modifications spanning Chinese tool manufacturers, semiconductor fabs and investment companies involved in advancing the regime’s military modernization, and critical regulatory changes to enhance the effectiveness of previous controls.

According to Alan Estevez, undersecretary of commerce for industry and security, BIS has been working with allies and partners to reassess and update export controls to protect U.S. technology from being used by China to produce advanced-node semiconductors and AI capabilities that could impact U.S. national security. “Today’s announcement represents the next step in that ongoing work,” the official said.

“This package is proactive and innovative in how we are responding to increasingly sophisticated actors and complex supply chains. We must ensure that we stay ahead of the PRC by protecting our advanced technology,” he added, referring to China’s official name, the People’s Republic of China.

BIS said the capability to enhance large-scale AI models could enable the development of cyberweapons or chemical, biological, radiological, or nuclear weapons and the use of facial and voice recognition to repress and surveil minorities and political dissidents.

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