Although Huawei has been able to overcome strict U.S. export controls to design advanced, high-performing chips in recent years (see 2403070059, 2309190052 and 2309120005), a report this month from Georgetown University's Center for Security and Emerging Technology suggests that Huawei’s chip performance increase is “smaller than advertised” and the company still faces significant production limits.
Chip export news
While the U.S. and the EU are increasingly aligning their views on China, the two sides still don’t yet fully agree on how to use export controls, investment restrictions and other economic security tools to respond to economic and national security threats posed by Beijing, panelists during a Center for a New American Security event said last week. They also said they expect challenges facing American businesses in China to continue to grow, particularly if the U.S. pursues more trade restrictions and as Beijing builds out its anti-foreign sanctions laws.
Senior U.S. sanctions and export control officials recently warned a group of American CEOs to do more due diligence on their semiconductor shipments, telling them Chinese suppliers are frequently sending their products to Russia.
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The Biden administration is close to issuing a new national security memorandum on artificial intelligence, which is expected to address technology security issues surrounding advanced AI models and related software, National Security Council officials said this week.
The Treasury Department last week issued a set of proposed regulations that could introduce new prohibitions and notification requirements on U.S. investments in China, Hong Kong and Macau as the Biden administration works toward finalizing the new rules before year-end (see 2405080039). The proposed rule, which builds on an advance notice of proposed rulemaking Treasury issued in August (see 2308090066), outlines how the agency would implement new bans on certain types of outbound American investments in China’s semiconductor, quantum and artificial intelligence industries, as well as notification requirements for other, broader investments in China’s chip and AI sectors.
Canada recently imposed export controls on five technologies related to quantum technology, advanced semiconductors and semiconductor equipment, the country said in a June 19 notice. The controls took effect June 20.
A government technical advisory committee is working on two reports about compliance challenges posed by the Bureau of Industry and Security's foreign direct product rule and its semiconductor export controls.
The Bureau of Industry and Security is working on another rule to address some of the comments it received from its updated semiconductor export controls released in October (see 2310170055), said Sharron Cook, a senior BIS export policy analyst.
Although the U.S. and the EU have been collaborating more closely on technology export controls and supply chain due diligence laws, there are still “massive questions” about whether those controls will extend to more mature-node semiconductors and how new EU supply chain laws are going to affect companies doing business in Europe, said U.S.-EU trade and security consultant Frances Burwell.