The Trump administration would be unwise to expand its export controls to cover older-generation semiconductors destined to China, but it could pursue new restrictions over less advanced versions of the tools used to make certain chips, technology policy analysts said in interviews, particularly if it’s willing to be more aggressive than the Biden administration in talks with the Dutch and Japanese.
Exports to China
Sen. Marco Rubio, R-Fla., President-elect Donald Trump’s reported choice to be secretary of state, and Rep. Mike Waltz, R-Fla., Trump's selection to be national security adviser, have played active roles on export controls and sanctions while serving in Congress.
The Commerce Department sent a letter to Taiwan Semiconductor Manufacturing Company ordering it to stop shipments of advanced semiconductors to certain Chinese customers, including 7 nanometer chips or others of “more advanced designs,” Reuters reported Nov. 9. The letter specifically orders TSMC to stop shipments, beginning Nov. 11, destined for Chinese customers of chips that power artificial intelligence accelerator and graphics processing units, the report said.
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The U.S. District Court for the Eastern District of New York this month denied a request from Chinese telecommunications giant Huawei Technologies Co. to help the company obtain access to certain discovery documents that are restricted by the Bureau of Industry and Security. Judge Cheryl Pollak said that while DOJ marked hundreds of thousands of documents at a lower level of classification than BIS, which would give Huawei greater access to the records, the documents are "still subject to further review by BIS" (United States v. Huawei Technologies, E.D.N.Y. # 18-00457).
Taiwan Semiconductor Manufacturing Company is expected to begin suspending production of AI chips at advanced process nodes of 7 nanometers for its Chinese customers beginning Nov. 11, the Financial Times reported last week.
The leaders of the House Select Committee on China asked five large semiconductor manufacturing equipment (SME) firms Nov. 7 to provide data about their China sales, saying the information would help lawmakers better understand the “flow of SME” to the Asian country and its contribution to China’s “rapid buildout of its semiconductor manufacturing industrial base.”
U.S. mobile phone parts producer Lumentum is under investigation by the Bureau of Industry and Security and DOJ for potentially violating U.S. export controls against Huawei, according to corporate filings.
The Bureau of Industry and Security fined multinational chip maker GlobalFoundries $500,000 after it illegally exported semiconductor wafers to a Entity Listed firm with ties to Semiconductor Manufacturing International Corp. (SMIC), China’s flagship chip manufacturing company.
The U.S. Court of Appeals for the 9th Circuit rejected an argument from a Chinese engineering professor who said his illegal export shouldn't have been subject to national security controls, which made the export subject to a higher base offense (U.S. v. Yi-Chi Shih, 9th Cir. # 23-3718).