The "BIS chip rules" refers to a series of export-control regulations issued by the U.S. Department of Commerce's Bureau of Industry and Security (BIS) that restrict the transfer of advanced computing chips, semiconductor manufacturing equipment, and related technology to the People's Republic of China and a handful of other destinations. They are codified as amendments to the Export Administration Regulations (EAR), 15 C.F.R. Parts 730–774.
The foundational package was published on October 7, 2022, and introduced controls keyed to chip performance thresholds (computing power and interconnect bandwidth), new license requirements for items destined to specified Chinese fabs, and an expanded Foreign Direct Product Rule (FDPR) capturing chips made abroad with U.S. technology. It also restricted "U.S. persons" from supporting the development or production of certain advanced-node semiconductors in China without a license.
BIS tightened and clarified the framework with follow-on rules on October 17, 2023, which closed workarounds (such as performance-density loopholes used by chips like Nvidia's A800 and H800), added new license-exception structures, and listed additional Chinese entities. Further updates in 2024 addressed high-bandwidth memory (HBM), additional fabrication tools, and due-diligence expectations, often coordinated informally with the Netherlands (ASML) and Japan (Tokyo Electron, Nikon).
Key mechanisms delegates should recognize:
- Entity List designations (e.g., SMIC, YMTC, and numerous Huawei affiliates).
- End-use and end-user controls targeting supercomputing and military applications.
- Presumption of denial licensing posture for advanced-node logic, DRAM, and NAND fabs in China.
- Extraterritorial reach via the FDPR, controversial under WTO rules and challenged rhetorically by Beijing.
The rules sit at the center of U.S.–China technology competition and are frequently cited in Security Council, DISEC, and ECOSOC debates on emerging technology governance, as well as in WTO disputes filed by China in December 2022.
Example
In October 2023, BIS expanded its chip rules to block Nvidia's China-tailored A800 and H800 GPUs after determining they exceeded revised performance thresholds.
Frequently asked questions
Technically they are export controls under the EAR, not sanctions administered by OFAC, but they function as targeted economic restrictions and are often grouped with sanctions in policy discussions.
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