Department of Commerce Issues New Export Controls on Semiconductors
Summary
On October 17, 2023, the Commerce Department’s Bureau of Industry and Security (BIS) released three rules amending the Export Administration Regulations (EAR) that significantly build on BIS's October 7, 2022, semiconductor controls and add several parties to the Entity List. Akin’s full write-up of these rules is available here. Notably, these controls expand existing controls on advanced computing integrated circuits (ICs) that are particularly capable of training large-scale AI systems. These controls are targeted, in large part, at inhibiting the development of “frontier” AI models in the People’s Republic of China (PRC). In its commentary to the rules, BIS states that “[a]dvanced AI models, trained on advanced computing ICs, can be used to improve the design and use” of “weapons of mass destruction, advanced weapons systems, and high-tech surveillance applications that create national security concerns, including through their use in exascale supercomputing[.]” BIS also states that “[t]he PRC seeks to use advanced computing ICs and supercomputing capacity in the development and deployment of these AI models to further its goal of surpassing the military capabilities of the United States and its allies.” BIS is accepting comments on these rules until December 18, 2023.
