Will the New US Export Controls Upend Contracts in the Tech Sector?

November 18, 2022 | BY

Susan Mok

Timothy Bickham, Wendy Wysong and Ali Burney of Steptoe & Johnson review the new rules relating to the export of semiconductors from the United States and the impact this will have on tech companies' existing and future business operations and how IP contracts will be affected.

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Summary

  • The BIS interim final rule is expansive, complex, and nuanced and its already had and will continue to have a significant impact on the Chinese semiconductor industry and the global semiconductor supply chain.
  • The BIS rule prohibits U.S. persons from doing certain activities that may help develop the Chinese IC industry absent authorization from BIS.
  • It is impossible to predict what additional export restrictions the United States will continue to introduce against China in the tech sector so it's critical for companies to negotiate their contracts with the possibility of disruption in mind.