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Chips Chatter: March 4-13, 2023

More to Come? U.S. Export Controls

According to reports, the Biden Administration is set to further tighten restrictions on the export of semiconductor manufacturing gear to China, with new restrictions expected to be announced as early as next month. The rules may double the number of machines that require special licenses for export.

What We’re Watching: the RESTRICT Act

On March 7, a bipartisan group of Senate lawmakers unveiled the RESTRICT Act. Led by Sens. Mark Warner (D-VA) and John Thune (R-SD) and 10 bipartisan cosponsors, the bill “establishes a risk-based process, tailored to the rapidly changing technology and threat environment, by directing the Department of Commerce to identify and mitigate foreign threats to information and communications technology products and services.” National Security Advisor Jake Sullivan also issued a statement signaling support for the bill’s approach. Supporters say the legislation would complement, not supplant, the CFIUS process. For more information, see our report in Trade Talk China.

Multilateral Chips Export Controls

The Netherlands moves forward

On March 8, the Dutch government briefed its parliament on plans to draft additional rules restricting exports of semiconductor technology to protect national security. This move follows months of discussions between the Netherlands, the United States, and Japan, in which Washington has tried to convince its allies to adopt similar restrictions to those it introduced in October. The Dutch are proposing to control exports of so-called DUV lithography products, broadening restrictions that already exist for lithography machines that are critical to producing the world’s most advanced chips. The rules are expected to be published before summer.

Japan hasn’t decided, yet

On March 9, Japanese Trade Minister Yasutoshi Nishimura said that Japan has not yet made a decision regarding restrictions on exports of chip-making equipment. He said, “we will consider appropriate measures in light of developments in the Netherlands,” adding, “our understanding is that the Dutch announcement does not target a specific country.”

State Department Announces International Semiconductor Funding

On March 14, the State Department outlined plans to implement the CHIPS Act International Technology Security and Innovation (ITSI) Fund. The ITSI Fund provides the State Department with $500 million ($100 million per year over five years, starting in Fiscal Year 2023) to provide for semiconductor supply chain security and international information and communications technology (ICT) security.

  1. Semiconductor Supply Chain Security: Funding will support efforts to 1) bring more mining, processing, and recycling capacity of critical materials online; 2) coordinate with partner economies to support a more resilient and diverse semiconductor supply chain; 3) expand and diversify downstream capacity in the Indo-Pacific and the Americas; and 4) facilitate the development of mechanisms to mitigate national security risks, including collaboration with international partners on export controls and licensing policies

  1. ICT Security: $40.7 million in FY 2023 ITSI funding will support efforts to 1) develop enabling environments for secure ICT ecosystems; 2) provide financing, project preparation support, and other investment de-risking support to catalyze private sector investments in secure ICT networks; and 3) engage with select partners to provide cybersecurity tools and services to better manage cybersecurity threats.

In Case You Missed It

  1. Former Trump administration official speaks out: Former National Security Advisor Robert O’Brien said the U.S. would rather demolish Taiwan’s semiconductor facilities rather than “let those factories fall into Chinese hands.” Gaining control of those plants would make China “like the new OPEC of silicon chips” and allow them to “control the world economy,” he said at the Global Security Forum in Qatar.

  2. Taipei demands trade talk with the EU: On March 13, the Taipei government-backed Central News Agency said in an editorial column that the European Union may not get a chip plant from Taiwanese companies if it continues to refuse to engage Taipei in trade talks.

  3. Hearing report – China’s next move after “Made in China 2025”: On March 8, during a House Judiciary Subcommittee on Courts, Intellectual Property and the Internet hearing titled “Intellectual Property and Strategic Competition with China, Mr. Mark Cohen (Berkeley Center for Law and Technology) pointed highlighted that a large cohort of Chinese high-rank party members all has STEM (especially semiconductor-related) background.

  4. CHIPS for America is hiring: CHIPS for America has posted several leadership positions to USAJobs, including Deputy Director for Programs, Director for the National Semiconductor Technology Center (NSTC) Program, Director for the National Advanced Packaging and Manufacturing Program, and many others.

© Copyright 2023 Squire Patton Boggs (US) LLPNational Law Review, Volume XIII, Number 76

About this Author

Pablo Carrillo Government Policies Attorney Squire Patton Boggs Law Firm
Of Counsel

Pablo E. Carrillo served as Chief of Staff to US Senator John McCain, Chair of the Senate Armed Services Committee and former US presidential candidate. He was responsible for the development and implementation of the Senator’s legislative and congressional oversight strategy.

Pablo also served as Minority General Counsel of the Senate Armed Services Committee, where he advised the Ranking Member and other Republican Senators on the defense authorization bill and the Minority’s oversight and investigative activities, as well as defense acquisition and contracting policy. He was the...

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Ludmilla Kasulke Trade Attorney Squire Patton Boggs Washington DC
Senior Associate

Ludmilla (Milla) Kasulke draws on her experience in both domestic and international policy to assist clients on trade matters. Milla provides multinational corporations, sovereign governments and entities, and quasi-government entities with advice on a wide range of trade policy, legal, and regulatory issues. She has been actively engaged in all aspects of the Section 232 process, including the exclusion petition process, and regularly advises clients on the impacts of current and potential new actions. Milla also regularly counsels clients on the impacts of current and potential new trade...

Camilo Daza Manga Public Policy Specialist
Public Policy Specialist

Camilo Daza Manga is a member of the firm’s Public Policy Practice, where he helps clients develop strategies to navigate the legislative process and achieve their goals, covering areas such as foreign affairs, trade, technology and education.

Prior to his role as a public policy specialist, Camilo participated in our highly competitive public policy internship program, where he monitored legislative and regulatory developments and analyzed legislation impacting the firm’s expansive network of global clients.


Rong Qin Public Policy Specialist Squire Patton Boggs
Public Policy Specialist

Rong Qin is a member of the Public Policy Practice, where she helps clients develop strategies to navigate the legislative process and achieve their goals, covering areas such as foreign affairs, trade, energy and technology.

Rong is a graduate of the Johns Hopkins School of Advanced International Studies (SAIS), where she studied international political economy and international economics, with a specialization in quantitative methods and economic theory application. While at SAIS, her master’s thesis using econometrics to analyze countries’...