Export Control: Semiconductors and Advanced Computing

In December 2022, the United States Department of Commerce published a new export control rule that covers advanced semiconductors, computing chips, items containing them, and transactions involving supercomputer and semiconductor end uses. The rule results in new restrictions on exports of items, technology and services. While the new export controls are largely targeted at the People’s Republic of China (PRC), the scope and likely impact extend beyond the PRC.

Under revisions to federal export control laws a license may be required for activities involving advanced computing chips, semiconductors, integrated circuits or supercomputers. Contact the Export Control Office for review of any: Research, research-related services (e.g., design, testing, analysis), and collaboration related to the design of computing chips, semiconductor manufacturing, process design kits (PDKs), or the development of hardware components for use in supercomputers.

Violations of the Export Administration Regulations, may be subject to both criminal and administrative penalties. Administrative monetary penalties can reach up to $300,000 per violation or twice the value of the transaction, whichever is greater.

Definitions

advanced-node integrated circuit (IC)

An integrated circuit that meets any of the following criteria:

logic integrated circuits using a non-planar transistor architecture or with a production technology node of 16/14 nanometers or less
NAND memory integrated circuits with 128 layers or more
dynamic random-access memory (DRAM) integrated circuits using a production technology node of 18 nanometer half-pitch or less

semiconductor

An integrated electronic device or system most commonly manufactured using materials such as, but not limited to, silicon, silicon carbide, or III–V compounds, and processes such as, but not limited to, lithography, deposition, and etching

process design kit (PDK)

A software tool provided by a semiconductor manufacturer to ensure that the required design practices and rules are taken into account in order to successfully produce a specific integrated circuit design in a specific semiconductor process, in accordance with technological and manufacturing constraints (each semiconductor manufacturing process has its particular PDK)

supercomputer

A computing system having a collective maximum theoretical compute capacity of 100 or more double-precision (64-bit) petaFLOPS or 200 or more single-precision (32-bit) petaFLOPS within a 41,600 ft³ or smaller envelope

Process Design Kits (PDKs)

PDKs are typically licensed to UC under a nondisclosure agreement (NDA), as the PDK contains proprietary information about the manufacturer’s process. Proprietary information and technology (“know-how”) is subject to export control regulations, and can require a license for certain foreign nationals.

Steps Before Using PDKs

UC Berkeley user should request the applicable export classification from the third party.
Export Control Office reviews the classification of any PDK file that it receives.
All PDK files, other than EAR99 PDKs, will undergo export compliance review, prior to being assigned for use.

Red Flags for Agreements

If you see any of the following in an agreement, contact the Export Control Office.

Export Control Language

"Nationals from __________ cannot use the PDKs"
"Notification to company required if UC applies for an export license"
"You agree to comply with export controls"
"Currently this technology is ECCN 3E991 or 3E001"

Sensitive Companies

ARM
Global Foundries
Intel
Muse Semiconductor
Samsung
Semiconductor Research Corporation
Tower (Jazz)
ST Microelectronics
Taiwan Semiconductor Manufacturing Company (TSMC)
United Microelectronics Company (UMC)
Semiconductor Manufacturing International Corporation (SMIC) on the EAR Entity List

These are example companies—generally flag companies in the industry: microelectronics, semiconductors and foundries.

Determining PDK Classification

Any U.S. vendor or manufacturer is required to provide you with the classification of their PDK or you might be able to locate that information in your contract, NDA, or other agreement.

EAR99 does not require a deemed export license for release in the U.S. (except to nationals of North Korea).
ECCN 3E991 is controlled for “Anti-Terrorism (AT)” reasons. Requires a deemed export license for release in the U.S. to nationals of Iran, North Korea, Syria, or Cuba.
ECCN 3E001 is controlled for “National Security (NS)” reasons. Requires a deemed export license within the U.S. for exports to nationals of all countries (except for Canada).

Classification	Country Restrictions	Compliance Management	What does this mean?
EAR99	North Korea	Perform RPS screening on users and check for any entity list entity.	Allowable with the exception of North Korea.
3E991	Cuba Iran North Korea Syria	Perform RPS screening on users and check for affiliation with an entity list entity. If user is from a country that has restrictions, work with Export Control to obtain a deemed export license.	Allowable with the exception of Cuba, Iran, North Korea, Syria. A license would be required for those, except North Korea.
3E001	All countries except for Canada	Perform RPS screening on users and check for affiliation with an entity list entity. If user is from a country other than U.S. or Canada, work with Export Control to obtain a deemed export license.	Allowable for Canadian use. A license would be required for any other country.

Possible Outcomes for PDK Export Control Reviews

No License Required for certain PDKs
Rework Transaction; different PDK, collaborator, etc.
Control Plan would be required for any license or controlled PDK
Export License (minimum six weeks to obtain) might be required to proceed
Decline Transaction if not able to get a license or rework for allowability

Contact the Export Control Office if you have questions or need assistance.