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Select U.S. and allied semiconductor policies U.S. and allied policies restrict exports of certain advanced SME, but most SME—including for foundational semiconductors—can still be exported v October 2022: U.S. Department of Commerce (USDOC) Issues “October 7” Export Controls Interim Final Rule The new rules took effect in November 2022 and revised the Foreign Direct Product Rule (FDPR). The rules focused on four critical areas to curb the expansion of China’s advanced semiconductor industry: supercomputers, advanced computing capabilities, advanced-node semiconductors, and semiconductor manufacturing equipment (SME). v January 2023: United States-Japan-Netherlands Strike a Deal The United States reaches a deal in principle with the Netherlands and Japan to control export shipments of certain advanced SME to China. v July 2023: Japan Imposes Export Controls on SME Japan’s March 2023 announcement that it will restrict exports of 23 types of SME takes effect. v September2023: Netherlands Imposes New Export Controls on SME The Netherlands’ July 2023 announcement that licenses for non-EU shipments will be required for export of advanced SME (including deep ultraviolet (DUV) equipment) takes effect. v November 2023: USDOC Updates and Modifications to October 7 Export Control Rule Three new interim final rules published in October 2023 take effect covering advanced computing semiconductors and SME. The rules are intended to tighten previous restrictions, reduce circumvention, and prevent China from purchasing and manufacturing leading- edgesemiconductors necessary for military advantage. Notes/Sources: David, Andrew, Haley Ryan, Mihir Torsekar, Yumi Gambrill, and Sarah Stewart, Foundational Fabs: China's Use of Non-Market Policies to Expand Its Role in the Semiconductor Supply Chain, Silverado Policy Accelerator, October 2023, https://silverado.org/news/report-foundational-fabs-chinas-use-of-non-market-policies/; Federal Register notices at USDOC, Bureau of Industry and Security, 7 https://www.bis.doc.gov/index.php/federal-register-notices/17-regulations/2116-federal-register-notices-2023.

China Semiconductor Manufacturing Equipment Import Analysis - Page 7 China Semiconductor Manufacturing Equipment Import Analysis Page 6 Page 8

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