Chip export controls

In short

Chip export controls are government rules that restrict sending specified chips, the tools that make them, or related software and technology to certain places, buyers or end uses. US rules on AI focus on advanced computing and semiconductor manufacturing.

Also called: Semiconductor export controls, AI chip controls, Advanced-computing export controls
Topic: Chips, compute and data centres
Level: Some background helps
First described: The Bureau of Industry and Security put its rule on advanced computing, semiconductor manufacturing items, and supercomputer and semiconductor end uses on public display on 7 October 2022. The rule was published in the Federal Register on 13 October 2022².

In the US Export Administration Regulations, section 744.23 adds licence rules on top of the control list. An exporter who knows an item is headed for a described destination, end use or end user needs a licence unless an exclusion applies. The section covers supercomputer end uses in Macau or Country Group D:5, production of advanced-node integrated circuits in those places, some advanced-computing items for companies headquartered there, and semiconductor manufacturing equipment. For a defined class of chip-production technology, it also reaches items that are subject to the regulations through the foreign direct product rule.¹

The Bureau of Industry and Security put this framework on public display on 7 October 2022. Its briefing said the rule covered advanced computing, supercomputers and semiconductor manufacturing equipment, and that it was scoped to the chips, equipment, activities and entities of greatest national security concern. On 17 October 2023, BIS adjusted which chips need a licence. It dropped interconnect bandwidth as a parameter, added a performance-density threshold, and extended controls, including to more countries, in order to address circumvention.²³

A product name is not the test. Section 744.23 uses classification numbers, destination, headquarters and end use. Licence exceptions cannot overcome its prohibition, except for manufacturing equipment and one set of advanced-computing items, and then only through exceptions the section names. Denial is presumed for Macau, Country Group D:5, and entities or parents headquartered there, unless an approval or case-by-case rule applies. Approval is presumed for some end users headquartered in the United States or Country Group A:5 or A:6 that are not majority-owned from Macau or D:5.¹

On 31 May 2026, BIS said the January 2025 AI Diffusion Rule had moved the licence requirement for certain '.a' advanced-computing items from section 744.23 to section 742.6, as a worldwide rule. BIS had said in May 2025 that it would not enforce that rule's new compliance requirements. A licence is still required under section 742.6 when those items are for an entity, or ultimate parent, headquartered in Country Group D:5 or Macau, even if the entity is elsewhere, unless a named exception applies. Bona fide data-centre operators need not stop existing use, storage, disposal or servicing of those items because of this note, until BIS says otherwise.⁴

Example

An exporter checks section 744.23 for a supercomputer, advanced-node or manufacturing end use, then checks the 31 May 2026 BIS note if the chip is a covered '.a' item and the buyer, or its parent, is headquartered in Country Group D:5 or Macau. Either fact can mean a licence is required.¹⁴

Why it matters

BIS said AI built on supercomputing and advanced semiconductors can improve military planning and logistics, and can support surveillance. It scoped the 2022 controls to the chips and equipment of greatest concern so ordinary commercial supply would be disrupted less.²

Questions people ask

What do chip export controls cover?

Current section 744.23 covers specified chips and computers for supercomputer end uses, items for advanced-node chip production, certain advanced-computing items for companies headquartered in Country Group D:5 or Macau, and semiconductor manufacturing equipment. BIS said on 31 May 2026 that the licence rule for certain '.a' advanced-computing items now cited in section 742.6 still applies to those headquarters.¹⁴

Do chip export controls ban all GPUs?

No. The 2022 BIS briefing said the measures were limited to the chips, equipment, activities and entities of greatest national security concern. Section 744.23 applies to the items and end uses it describes. Some of those restrictions can be overcome by a licence exception named in the section, and others cannot.¹²

Why do AI chips face export controls?

BIS said AI facilitated by supercomputing and advanced semiconductors can improve the speed and accuracy of military decision-making, planning and logistics, and can support surveillance and disinformation campaigns. The 2022 briefing said the controls were aimed at those uses, while limiting disruption to commercial supply chains.²

Related terms

Sources

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