The Bureau of Industry and Security published its first set of frequently asked questions on its new China-related export controls (see 2210070049), covering the definition of semiconductor “facility” and offering guidance on certain U.S. persons requirements, license review policies and more.
The Bureau of Industry and Security is confident it will soon convince allies to adopt similar semiconductor export controls on China, Undersecretary Alan Estevez said, adding that he expects some type of “multilateral deal” finalized in the “near term.” Estevez, speaking during an Oct. 27 event hosted by the Center for a New American Security, also said BIS isn’t “done” imposing chip-related controls and said companies should expect new restrictions on emerging technologies, including on biotechnologies, artificial intelligence software and items in the quantum sector.
Samsung and SK Hynix view their one-year waiver from certain U.S. export license requirements (see 2210070049) as a deadline and have begun exploring a “Plan B” if they can’t produce certain chips in China, Nikkei reported Oct. 25. After the South Korean chipmakers received a Bureau of Industry and Security waiver to continue using controlled semiconductor equipment in China (see 2210120002), they also “started a campaign to assess the business risks of their operations in China, as well as to plan for different scenarios,” the report said. "Who knows what will come after one year? It might or might not be extended," a person familiar with Samsung’s situation told Nikkei. "The license can be [denied] so that the company could face a case-by-case review." SK Hynix also told Nikkei it’s unsure what will happen after the one-year period ends.
The Bureau of Industry and Security recently sent a proposed charging letter to Seagate Technology alleging that it violated U.S. export controls by providing controlled items to a company on the Entity List. Seagate said the Aug. 29 letter accused it of violating the Export Administration Regulations by providing hard disk drives to the blacklisted company and its affiliates between August 2020 and September 2021.
The Bureau of Industry and Security is conducting a survey to assess the U.S. microelectronics industrial base, the agency announced this week. Answers for the survey will help BIS complete a study on the microelectronics industrial base mandated by the FY 2021 National Defense Authorization Act. BIS said its support staff can be reached at SemiconductorStudy@bis.doc.gov “to answer questions and assist in completion of the survey."
The Bureau of Industry and Security this week extended the comment period on an information collection related to its license exemptions and exclusions for export-controlled goods. In June, comments were requested during a 60-day period (see 2206140007), but the agency said it’s allowing for an additional 30 days of input.
Although the new U.S. export controls against China are likely to have minimal impacts on the U.S. semiconductor industry, a broader implementation of the controls could quickly raise costs on U.S. and allied suppliers and hurt the domestic chip industry, the Rhodium Group said in a report this month. The research firm said damages to semiconductor companies “could balloon quickly under a tightening of controls,” which it believes is “highly plausible.”
The Bureau of Industry and Security is hoping the recent changes to its administrative enforcement policies help clear a “backlog” of minor cases that had been taking up too much of the agency’s time and resources, said Matthew Axelrod, BIS’s top enforcement official. Axelrod, speaking during an event last week hosted by the Massachusetts Export Center, also said the agency is making progress on establishing a multilateral export enforcement mechanism and urged exporters to make sure they are continuously screening suppliers and customers.
The Bureau of Industry and Security this week revoked the export privileges for Texas resident Claudia Delgadillo for her role in illegally concealing, buying and facilitating the “transportation and concealment” of rifles and handguns from the U.S. to Mexico. BIS said Delgadillo was convicted Oct. 9, 2019, and was sentenced to four years in prison, three years of supervised release and a $100 assessment. BIS denied Delgadillo's export privileges for 10 years from the date of conviction.
The Bureau of Industry and Security on Oct. 19 completed interagency review for a final rule that would implement certain export control decisions made during the 2021 Wassenaar Arrangement cycle. The rule, sent for review Aug. 4 (see 2208080021), will revise the Commerce Control List and corresponding parts of the Export Administration Regulations, including License Exception Adjusted Peak Performance, BIS said.