BIS Issues New Chip Rule, Biotech Controls; Adds to Entity List
The Bureau of Industry and Security released four new rules Jan. 15, including one that will make more changes to its semiconductor-related export controls -- including by creating a new list of trusted chip designers and service providers -- another rule that will place new controls on certain biotechnology equipment and technology, and two rules that will add companies to the Entity List.
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One interim final rule, which has an effective date of Jan. 16 and a compliance date of Jan. 31, will impose a broader license requirement for chip foundries and packaging companies exporting certain advanced chips, unless those exports are destined to a list of trusted chip designers, chip assembly and test services firms, or other companies outside of U.S.-embargoed countries that meet certain conditions. BIS also said the rule sets out "additional due diligence procedures" for exporters of advanced chips, introduces new reporting requirements for certain higher-risk customers and makes other changes, clarifications and updates to BIS export controls for advanced semiconductors and related items, including its latest controls on advanced AI chips released Jan. 13.
Another interim final rule will introduce new export controls for certain biotechnology-related items, including “high parameter flow cytometers” and “liquid chromatography mass spectrometers specially designed for top-down proteomics.” BIS said this equipment can be used for “innovative solutions” in the fields of health and climate change, but they can also be “misused by countries of concern,” including through training AI systems for military purposes. The controls take effect Jan. 16.
BIS will also add 27 entries to the Entity List for helping China make or procure advanced semiconductors or for supporting China’s military modernization efforts through AI research, the agency said in a pair of notices effective Jan. 16. The entities are located in China and Singapore, and they will be subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial. Some will be subject to certain foreign direct product rule restrictions.