In a third round of controls, the US Department of Commerce’s Bureau of Industry and Security (BIS) has included 140 entities in its Export Administration Regulations (EAR) list.

The move was actioned on 2 December in an effort to safeguard US national security and foreign policy interests. The final rule also modified 14 existing entries on the entity list, of which 14 revisions were under China.  

All companies listed under the EAR list are affiliated with the development and production of advanced-node integrated circuits and semiconductor manufacturing items or have supported the Chinese government’s Military-Civil Fusion (MCF) Development Strategy.   The export controls bar US suppliers from shipping to listed entities without a specific licence. Equipment from Israel, Malaysia, Singapore, South Korea, and Taiwan is subject to these rules, while Japan and the Netherlands are exempt. Sources suggest the USA may exempt other countries that adopt similar controls.  

US and Dutch regulations have pressured high-end chip manufacturers, notably ASML, which can no longer sell some EUV lithography systems to China. This restriction significantly impacted ASML’s revenue, as China represented a substantial share of its high-end equipment sales.  

The restrictions represent another effort to control US chipmaking IP and materials critical to semiconductor manufacturing. Following the introduction of the CHIPS and Science Act of 2022, the USA has demonstrated its commitment to securing a foothold in the semiconductor industry, mobilising more than US$240Bn in funding.