Commerce Strengthens Restrictions on Advanced Computing Semiconductors to Enhance Foundry Due Diligence and Prevent Diversion to PRC

"On January 15, 2025, the U.S. Bureau of Industry and Security issued an update regarding Commerce Strengthens Restrictions on Advanced Computing Semiconductors to Enhance Foundry Due Diligence and Prevent Diversion to PRC." The rules impose a broader license requirement for foundries and packaging companies seeking to export certain advanced chips, unless one of three conditions is met. The updates also create a process for new companies to be added to the list of Approved IC designers and OSATs, improve reporting for transactions involving newer customers who may pose a heightened risk of diversion, and make technical corrections to existing controls.