The Bureau of Industry and Security released its long-awaited pre-rule for foundational technologies (see 2005190052), asking for industry feedback on the types of technologies BIS should target for potential export controls. The effort, which BIS is pursuing alongside restrictions for emerging technologies, seeks to pinpoint technologies that the agency said may warrant more strict controls.
The Bureau of Industry and Security added 60 entities to the Entity List, including 24 entities for helping the Chinese military build artificial islands in the South China Sea. BIS also designated entities in France, Hong Kong, Indonesia, Malaysia, Oman, Pakistan, Russia, Switzerland and the United Arab Emirates for a range of activities, including illegal exports to Iran, submitting false information to BIS, contributing to Russian biological weapons programs and more. BIS also revised five existing entries under Canada, Germany, Hong Kong, Iran and the UAE.
The Commerce Department’s recent restrictions against Huawei could “create substantial uncertainty and disruption” for the semiconductor supply chain, leading to lost sales and an eroding customer base for U.S.-origin goods, a semiconductor manufacturing industry group said Aug. 24. Semi asked Commerce to extend the deadline for the savings clause in its Aug. 17 rule and review licenses for non-5G items with “significant flexibility.”
After the first high-level review of the phase one trade deal, the principals talked about progress and ensuring the success of the U.S.-China trade agreement, but some believe the happy talk can't obscure that China and the U.S. are disentangling their mutual dependency in tech goods and services. “There is a re-alignment that is happening in real time,” Rideau Potomac Strategy Group President Eric Miller said in an Aug. 25 phone interview, the day after the call. U.S. and Chinese trade officials reemphasized their commitment to the phase one agreement during the Aug. 24 call, the Office of the U.S. Trade Representative said.
The semiconductor industry was surprised by the U.S.’s increased restrictions on Huawei (see 2008170029) and expects significant short-term supply chain disruptions, industry officials and experts said in interviews. Officials also thought the initial version of the rule, issued in May (see 2005150058), was sufficient, and were frustrated that the Bureau of Industry and Security did not ask for feedback on the new requirements.
Cree views 5G as a “multiyear expansion, with major traction coming,” CEO Gregg Lowe said on an Aug. 18 investor call. The company supplies silicon-carbide radio frequency (RF) and power chips for 5G infrastructure applications. “There have been a number of recent announcements coming out of Asia pointing towards growing 5G momentum in that region. While the global pandemic has further delayed some rollouts in other regions, we continue to be well positioned to support this global expansion.” Cree stopped shipping to Huawei “for the better part of a year” after the Commerce Department’s export ban took effect, Lowe said: “We have no Huawei revenue plans in any of our future projections or forecasts.” Any “large impact” from Huawei, “we've basically taken it out of the picture,” he said. “We have developed good relationships with other players around the world and are repurposing the technology that we had developed for Huawei for those customers.” Lowe conceded the “Huawei situation was a pretty significant setback for us. ... But we've adjusted our plans, we've adjusted our focus to go after non-Huawei customers.”
The Commerce Department’s increased restrictions on exports to Huawei (see 2008170029) will cause “significant disruption” to the U.S. semiconductor industry, the Semiconductor Industry association said Aug. 17. Although SIA is “still reviewing the rule,” CEO John Neuffer called the restrictions “broad” and said they significantly expanded on changes made to the foreign direct product rule in May (see 2005150058). “We are surprised and concerned by the administration’s sudden shift from its prior support of a more narrow approach intended to achieve stated national security goals while limiting harm to U.S. companies,” Neuffer said. “We reiterate our view that sales of non-sensitive, commercial products to China drive semiconductor research and innovation here in the U.S., which is critical to America’s economic strength and national security.” Commerce did not comment.
The Bureau of Industry and Security on Aug. 17 added 38 Huawei affiliates to the Entity List and refined a May amendment to its foreign direct product rule, further restricting Huawei’s access to U.S. technology, the agency said in an Aug. 17 final rule. BIS also modified four existing Huawei entries on the Entity List, amended language in the Export Administration Regulations and said it will continue one cybersecurity-related authorization under its temporary general license for Huawei. The remainder of the license expired Aug. 13.
Taiwan wants to begin negotiations on a free trade deal with the U.S., Taiwan President Tsai Ing-wen said Aug. 12, in a speech for think tanks the Hudson Institute and the Center for American Progress. The president said a trade deal with the U.S. is among her priorities during her second term, saying it will help increase Taiwan’s supply chain security.
Huawei plans to stop production of its flagship Kirin chipsets next month due to pressure from U.S. export restrictions and license requirements, Reuters reported Aug. 8, citing financial magazine Caixin. Reuters quoted by way of Caixin coverage of an industry event, Richard Yu, CEO of Huawei’s customer business unit, who said U.S. restrictions have made it “impossible” to keep developing the chipsets, which are used in mobile phones. “From Sept. 15 onward, our flagship Kirin processors cannot be produced,” Yu said while speaking at the recent event in Shenzen, China. “Our [artificial intelligence]-powered chips also cannot be processed. This is a huge loss for us.” Huawei did not comment.