BIS Likely to Issue Several Emerging Tech Proposals This Fall, Firm Says
An investment and research firm expects the Bureau of Industry and Security to issue several proposed rules for export controls related to semiconductors this fall and said BIS is considering other restrictions on certain Chinese technology companies. In a Sept. 17 report, the Cowen Washington Research Group said BIS is “likely” to soon issue several notices of proposed rulemaking to request industry comment on new controls for semiconductor capital equipment, mostly so the U.S. is prepared with new proposals for the next Wassenaar Arrangement cycle.
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The group expects electronic design automation software and “etch, deposition and metrology tools” will get “particular attention,” but stressed that it doesn’t believe the Commerce Department will impose these controls without first gathering industry feedback. Matt Borman, BIS’s deputy assistant secretary for export administration, said in March the agency is planning to issue another set of emerging technology controls this year (see 2103190037), which could include certain biological equipment software (see 2109140011).
Hillary Hess, BIS’s regulatory policy director, told members of a Commerce technical advisory committee last week that the agency is hoping to have “at least one” rule out this fall, but other BIS officials are hoping the agency can publish several.
The research group also said Commerce is considering whether to impose new controls on China’s Yangtze Memory Technologies Company, which is not on the Entity List. Two Republican senators asked Commerce to add the company to the list in July, and the agency said it’s “continually reviewing available information” for more additions (see 2107130006). But Cowen said the case for more restrictions against YMTC is unclear because the company “can somewhat more readily source from non-U.S. vendors.”
Commerce is also unlikely to add Chinese smartphone maker Honor Device Co. Ltd. to the Entity List despite pressure from some lawmakers (see 2108060058), the report said. Cowen said the new administration has had eight months since President Joe Biden took office “to develop evidence that Huawei is actually receiving chips and software being sold to Honor,” but likely hasn’t found much. “It’s still possible such a link will be uncovered, but given the passage of time,” the group said, “we’re thinking U.S. vendors will be able to continue selling to Honor.”