The United States upgraded its advanced semiconductor export control policy while adding a large number of Chinese and Singaporean corporations to the transaction restriction list, thereby strengthening sanctions against China. This appears to be in line with efforts to intensify sanctions against China ahead of President Joe Biden's departure.
On the 15th, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced two advanced semiconductor export control policies through its website. First, it newly included 27 AI and computing corporations (25 from China and 2 from Singapore) on the entity list. Corporations listed cannot export goods or technology without U.S. government approval.
Among the newly added corporations by the U.S. government is Zhipu AI, in which Chinese corporations Alibaba and Tencent participate as investors. The U.S. views Zhipu AI as assisting China's military modernization through AI research. Additionally, the U.S. government has placed Chinese communications equipment giant Sophgo on the entity list as well. This is because the semiconductors ordered and manufactured from Taiwan's TSMC are the same as those used in Huawei's AI systems. Consequently, the U.S. believes Sophgo has supported Huawei, which is under U.S. sanctions. This also includes nine other corporations related to China's military institutional sector.
The Department of Commerce also imposed separate global controls related to semiconductors at or below 14nm (nanometers) or 16nm, requiring government approval for sales to countries like China. The previous regulation was for '7nm or less'. There are 24 semiconductor assembly and testing companies that the BIS has approved, including Samsung Electronics, Intel, TSMC, GlobalFoundries, and ASE, which are subject to U.S. regulations. These manufacturers can bypass U.S. government licensing requirements if they meet specific conditions, such as collaborating with approved semiconductor packaging and design companies that have due diligence and reporting obligations.
U.S. Secretary of Commerce Gina Raimondo said, "These rules will further enhance our control over the efforts of those trying to undermine U.S. security by circumventing laws in China and the United States. We will not only limit access to advanced semiconductors and aggressively enforce the rules but also proactively respond to threats to continue protecting our national security."