California-based Arteris, a multinational semiconductor company, said it received a warning letter from the Bureau of Industry and Security after it disclosed potential export control violations (see 2110130040). The company was given the warning earlier this year after BIS decided “not to refer this matter for criminal or administrative prosecution,” Arteris said in an August SEC filing.
Chip export news
New export restrictions on microchips from NVIDIA, AMD and potentially other chipmakers come amid “a review of existing policies related to China and will potentially seek to employ a variety of legal, regulatory, and, when relevant, enforcement tools to keep advanced technologies out of the wrong hands,” a Bureau of Industry and Security spokesman said when reached for comment Sept. 1.
Chipmaker NVIDIA said the U.S. has imposed a “new license requirement, effective immediately,” on exports of certain chips to China (including Hong Kong) and Russia. The company’s Aug. 26 Securities and Exchange Commission filing said the government informed it that same day of the requirement, which covers the company’s A100 and H100 chips, as well as any future chips that meet performance thresholds equivalent to the A100.
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Japan recently rejected South Korea’s request to allow it back on Japan’s white list of trusted trading partners, according to an unofficial translation of an Aug. 21 report from South Korean daily newspaper Munhwa Ilbo. The report, citing an article recently published by Japan’s Sankei Shimbun, said Japan rejected the South Korea request at a foreign ministers meeting held in Cambodia earlier this month.
China’s announcement this summer that it made progress in its chip technology doesn't necessarily mean there was a failure in U.S. export control policy, said Bill Reinsch, a senior export administration official during the Bill Clinton administration. Reinsch said it’s unclear if China’s new chip even exists and where Beijing received the equipment to produce it.
The U.S.’s recently announced export controls on four technologies that can be used to produce advanced semiconductors and gas turbine engines (see 2208120038) are a “violation” of international trade rules, a spokesperson for China’s Ministry of Commerce said this week. The controls -- which will impose license restrictions on two substrates of ultra-wide bandgap semiconductors, certain Electronic Computer Aided Design software and certain pressure gain combustion technology -- “will inevitably hinder international scientific and technological exchanges” and “threaten the security and stability of global industrial and supply chains,” the spokesperson said, according to an unofficial translation of an Aug. 18 news conference transcript. “The United States continues to generalize the concept of national security and abuses export control measures,” the spokesperson said.
The Bureau of Industry and Security last week announced new export controls on four technologies that can be used to produce advanced semiconductors and gas turbine engines. The controls, which were agreed to by members of the multilateral Wassenaar Arrangement at last year’s plenary, will apply to two substrates of ultra-wide bandgap semiconductors, certain Electronic Computer Aided Design (ECAD) software and certain pressure gain combustion (PGC) technology.
Even though U.S. export controls haven’t cut into SMIC’s profit margins, they have hurt the Chinese semiconductor company’s ability to advance its chip-producing technology, said Min-Hua Chiang, a Heritage Foundation research fellow. Because restrictions imposed by the Bureau of Industry and Security limit SMIC’s ability to import equipment for making chips below 10 nanometers, the company is “stuck with using older technology,” she wrote in an August post. “Without access to foreign equipment,” the post said, “it will be very difficult for China to produce the most advanced chips any time soon, putting a severe crimp in Beijing’s plans for its military and security apparatus.”
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.