Overview of US Export Controls on Advanced Computing and Semiconductors (2022–2023 Rules)
The United States Bureau of Industry and Security (BIS) implemented stricter export controls in 2022 and 2023 targeting advanced computing items, including high-end semiconductors, chipmaking equipment, and related services. These controls restrict the export, reexport, and transfer of such technologies to destinations deemed sensitive, particularly China and other countries identified as national security risks. The rules were further tightened in 2023 and 2024, with key provisions remaining in effect even after the rescission of the broader diffusion framework in 2025.
The controls apply to advanced computing items categorized under the Export Administration Regulations (EAR), including items with performance metrics such as floating-point operations per second (FLOPS) exceeding specified thresholds. The rules also extend to software and technology used in the design, development, or production of such advanced chips.
Key Components of the 2022–2023 Export Controls
The 2022–2023 export controls focus on three primary categories: advanced semiconductors, chipmaking tools, and related services.
- Advanced Semiconductors: The controls target semiconductors with advanced performance characteristics, such as those used in AI training and inference. The 2023 amendments introduced stricter licensing requirements for semiconductors with FLOPS exceeding 10^15 (exaflops) for supercomputing applications, effectively limiting their export to restricted destinations without prior authorization.
- Chipmaking Tools: Export controls also apply to equipment used in the manufacturing of advanced semiconductors, including photolithography machines, etching tools, and deposition systems. These tools are critical for producing chips with sub-14 nanometer (nm) process nodes, which are increasingly used in AI and defense applications. The 2023 rules expanded the scope of controlled tools to include those capable of producing chips with even finer geometries, further restricting their availability to sensitive regions.
- Related Services: In addition to hardware, the controls extend to technical services, software, and training related to the design, development, or production of advanced computing items. Licensing requirements for these services were tightened in 2023 to ensure compliance with end-use restrictions, particularly for applications in AI and military sectors.
Geographic and End-Use Restrictions
The export controls are primarily designed to limit the transfer of advanced computing technologies to destinations identified as national security concerns. China is the most prominently restricted destination, but the rules also apply to other countries such as Russia, Iran, and North Korea, as well as entities in regions like Hong Kong and Macau under certain conditions.
For example, exports to China for civilian AI applications may require a license, while military or dual-use applications are subject to even stricter controls.
The 2023 amendments introduced additional safeguards to prevent circumvention of the controls.
Impact of the 2025 Rescission of the Diffusion Framework
The diffusion framework, a set of controls aimed at slowing the proliferation of advanced technologies to adversarial nations, was set to be rescinded in 2025. Despite this rescission, the stricter export controls on advanced computing and semiconductors introduced in 2022 and 2023 remain in place.
The retention of these controls underscores the long-term strategic importance of limiting the export of high-end computing capabilities to restricted destinations. While the diffusion framework may have provided a broader policy context, the specific rules governing advanced semiconductors and chipmaking tools were deemed critical enough to maintain independently.
Compliance and Enforcement Mechanisms
The BIS maintains a list of controlled items and requires exporters to obtain licenses before shipping goods to restricted destinations.
Exporters are advised to consult the EAR and the BIS’s latest guidance documents to ensure adherence to the evolving rules.
Required actions
- Obtain BIS licences before exporting controlled AI chips, equipment or related technology to China, Macau and other restricted destinations; know-your-customer diligence for diversion - US persons may not support advanced-node semiconductor development in China without authorisation - Cloud providers must not knowingly provide controlled compute to restricted end users