On October 17, 2023, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) released two interim final rules which serve to reinforce and expand controls on advanced semiconductors and related computing items, along with semiconductor manufacturing equipment.
The first rule, titled the Advanced Semiconductors Rule, seeks to amplify control and monitor advanced semiconductors and correlated computing items. Meanwhile, the Semiconductor Manufacturing Equipment Rule focuses more prominently on the regulation and oversight of equipment used in the manufacturing of semiconductors. Further details of these rules and potential implications they hold for the industry can be found in detail here.
These legislative changes arrive amidst the evolving global dynamics of the semiconductor industry, of which both North American corporations and law firms are deeply entwined. It’s no surprise, given the crucial role semiconductors play in various aspects of our economy—be it automotive, telecommunication or consumer electronics.
As a result, these updates to the export control rules demand attention from a legal perspective given their potential to impact business operations, client relations, and long-term strategic decisions of entities involved in manufacturing, selling or using semiconductors and related computing items across a wide range of sectors.