The EU is considering new sanctions on Chinese companies for supporting Russia’s military, the Financial Times reported May 7. The sanctions, which are expected to be discussed by EU member states this week, could target seven Chinese companies for selling equipment to Moscow that could be used in weapons, the report said. The list of companies reportedly includes two companies from mainland China, 3HC Semiconductors and King-Pai Technology, and five based in Hong Kong: Sinno Electronics, Sigma Technology, Asia Pacific Links, Tordan Industry and Alpha Trading Investments. Some of the companies are already subject to U.S. restrictions, including 3HC, which was added to the Commerce Department's Entity List in April for supplying Russia's military (see 2304120039). All EU member states would have to agree to the new measures before they take effect.

Although Taiwan Semiconductor Manufacturing Company last year secured a one-year authorization to continue certain China-related activities despite the Commerce Department’s October chip controls, the company has “no assurance that we will be able to continue securing such general authorization on a timely basis or at all,” it said in an April Securities and Exchange Commission filing. The Bureau of Industry and Security recently said it’s working with some companies to allow them to continue certain activities authorized by the waivers after they expire (see 2302240008).

U.S. export controls and investment restrictions can successfully maintain America’s lead over China in sensitive technologies, including semiconductors, said Michele Flournoy, a former Defense Department official. But she also warned against policies that could push the U.S. toward decoupling from Beijing, saying the government needs to do a better job working with industry to craft the restrictions.

Governments globally should “proceed carefully” when considering new trade restrictions on per-and polyfluoroalkyl substances (PFAS) to avoid “unduly” restricting current semiconductor innovation, the Semiconductor Industry Association said last week. The group said PFAS “are used in a wide range of industrial processes and consumer products,” and although some may present “environmental and health concerns,” governments should avoid controlling uses of the substances that may not present health and environmental risks.

U.S. export controls imposed against China’s semiconductor industry in October (see 2211010042) are so far having “only minimal effects” on the country’s artificial intelligence sector, Reuters reported May 3. Although the rules restricted shipments of certain chips “that have become the global technology industry's standard for developing chatbots” and other AI systems, including chips supplied by Nvidia, the U.S. technology company has created “variants of its chips for the Chinese market that are slowed down” to comply with the new license requirements, the report said.

The Senate will work over the next several months to build a bill Majority Leader Chuck Schumer, D-N.Y., sees as a sequel to its China package -- also known as the Chips Act -- that could expand China-related export controls and investment restrictions.

U.S. hardware supplier MaxLinear said it submitted a “comprehensive” voluntary self-disclosure to the Bureau of Industry and Security in March detailing its potential illegal exports to a Chinese foundry on the Entity List. The company, which submitted an initial notification to BIS last year (see 2211070014), has since hired outside counsel who recently completed a “privileged investigation” of the potential violation, according to its April filing with the SEC. The company also “took immediate action to remediate, including by preventing recurrence.”

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The EU and Taiwan wrapped up their second Trade and Investment Dialogue April 28, at which they discussed "horizontal strategic trade issues and bilateral concerns," the EU's Directorate-General for Trade said. The parties discussed work that has taken place since the last dialogue on export controls, direct investment screening, semiconductors and research and innovation, and agreed to "pursue their engagement in all these areas." Both sides also agreed to continue cooperating to align their Russian sanctions regimes and prevent circumvention of the restrictions. The EU and Taiwan "agreed to engage in expert discussions on digital trade facilitation measures such as e-invoicing and e-signature, with a view to lowering transaction costs and increasing economic efficiency" for businesses on both sides.

U.S. semiconductor company KLA “received clarification” from the U.S. government on matters surrounding chip export controls on China and can “now resume some shipments that we had previously excluded,” the company said as part of its latest earnings report released last week.