Direct Answer: Multiple Categories Across Four Major Jurisdictions
In 2026, semiconductor products face export controls to China under at least four major regulatory regimes: US Bureau of Industry and Security (BIS) Export Administration Regulations (EAR), EU Dual-Use Regulation (2021/821), Japan’s Foreign Exchange and Foreign Trade Act (FEFTA), and China’s own export controls under the PRC Export Control Law. Approximately 65% of semiconductor product categories by value are subject to some form of export control or licensing requirement when destined for China — a dramatic increase from roughly 20% in 2021. The scope and severity vary by jurisdiction, with US controls being the most extensive, EU and Japanese controls narrower but coordinated, and Chinese controls targeting specific materials as a countermeasure.
US BIS Export Controls on Semiconductor Products to China
The United States imposes the most comprehensive export controls on semiconductor products to China. Since the October 7, 2022 BIS rules (87 FR 62186) and multiple subsequent amendments through 2025, the controls cover:
| Product Category | ECCN Classification | Control Basis | License Presumption | Impact on China Trade |
|---|---|---|---|---|
| Advanced-node logic ICs (14nm/16nm and below) | 3A001, 3B001, 3C001, 3D001, 3E001 | NS, RS, NP, Entity List | Presumption of denial | Near-total export ban to entities on Entity List; license required for all China-bound shipments |
| Semiconductor manufacturing equipment (14nm and below capability) | 3B001 (lithography, deposition, etch, metrology) | NS, RS, FDPR | Presumption of denial | Equipment exports effectively blocked to most Chinese foundries and IDMs |
| EDA software for advanced-node ICs | 3D001, 3D992 | NS, RS, FDPR | Presumption of denial | No US-origin EDA for 14nm or below design in China without license |
| High-bandwidth memory (HBM) | 3A001, 3A991 | NS, RS | Presumption of denial for HBM2E and above | HBM exports to China restricted; HBM2 and below subject to case-by-case review |
| GPUs and AI accelerators (TPP ≥4,800 or TPP ≥1,600 + PD ≥5.92) | 4A003, 4A004, 4A090 (new 2023 ECCN) | NS, RS, NP | Presumption of denial (data center class) | NVIDIA H100/B200, AMD MI300X, and comparable chips effectively banned |
| Advanced-node NAND flash (128+ layers) | 3A001, 3B001 | NS, RS, FDPR | Presumption of denial for equipment | Equipment for 128L+ NAND restricted; YMTC and other Chinese NAND fab equipment sourcing blocked |
| Advanced-node DRAM (18nm half-pitch and below) | 3A001, 3B001 | NS, RS, FDPR | Presumption of denial for equipment | CXMT and other DRAM makers limited to legacy nodes for new equipment |
| Semiconductor materials (high-purity SiC substrates, advanced EUV photoresists) | 3C001, 3C992 | NS, RS | Case-by-case for non-EUV materials | EUV photoresists and high-purity SiC substrates require license; many denied |
The FDPR (Foreign Direct Product Rule) is the most powerful and controversial control mechanism. It extends US jurisdiction to foreign-produced items that are (a) the direct product of US-origin technology or software, or (b) produced by a plant or major component of a plant that is itself the direct product of US-origin technology or software. Under the October 2023 expansion, FDPR applies to foreign-produced semiconductor manufacturing equipment, EDA software, and advanced-node ICs if they are destined for Chinese entities on the Entity List or if the item’s technology is above specified performance thresholds. This means a Dutch ASML lithography machine or a Japanese Tokyo Electron etcher manufactured using US-origin software or components may require a BIS license for export to Chinese foundries.
EU Dual-Use Regulation Controls (2021/821)
The European Union’s Dual-Use Regulation (EU 2021/821) controls a narrower set of semiconductor products compared to US regulations, but has been progressively harmonized since 2023 through EU-US Trade and Technology Council (TTC) working groups:
- EU Annex I items — Controls on semiconductor manufacturing equipment (Category 3B) are broadly similar to US ECCNs 3B001/3B002 but cover fewer sub-items and have lower performance thresholds for triggering controls. ArF immersion lithography equipment for nodes below 28nm is covered; KrF and I-line steppers for mature nodes are not.
- EU Annex IV (cyber-surveillance items) — Certain semiconductor test and measurement equipment used in surveillance applications may be controlled under this annex when destined for military end-users in China.
- EU Catch-All Clause (Article 4) — EU Member States can impose national catch-all controls on any item not listed in Annex I if there is a concern about military end-use or diversion risk. Several EU states (Netherlands, Germany, France) have applied catch-all clauses to semiconductor manufacturing equipment destined for Chinese military-connected entities since 2023.
- National controls (Netherlands) — The Netherlands imposed national licensing requirements on advanced DUV lithography equipment (TWINSCAN NXT:2000i and above) in 2023, expanding to additional ASML mid-range immersion systems in 2024. These national controls are stricter than EU Annex I requirements and effectively align with US controls regarding ASML equipment for Chinese foundries.
EU license processing times for semiconductor equipment to China are shorter than US equivalents (typically 4–8 weeks vs 6–12 months for US BIS licenses), and the presumption of denial applies to a narrower set of items. However, the EU’s Technology Assessment mechanism (Article 12) allows member states to require pre-export notification for emerging technologies including advanced semiconductor manufacturing processes, which can delay shipments by 4–6 weeks even if a license is ultimately granted.
Japan FEFTA Controls on Semiconductor Products
Japan’s export controls under the Foreign Exchange and Foreign Trade Act (FEFTA) were substantially tightened starting in May 2023, when Japan added 23 categories of semiconductor manufacturing equipment to its controlled list, covering essentially the same scope as the US BIS October 2022 rules:
| Equipment Category | Japan Control Scope | License Requirement | Status vs China (2026) |
|---|---|---|---|
| Lithography equipment (ArF immersion, EUV) | All items for ≤14nm processing | Individual license required | Denied for advanced-node fabs in China |
| Deposition equipment (ALD, CVD, epitaxy) | High-aspect-ratio deposition ≥10:1 | Individual license required | Denied for fabs on Entity List; case-by-case for others |
| Etching equipment (dielectric, conductor) | ≤14nm high-aspect-ratio etching | Individual license required | Denied for advanced-node foundries |
| Inspection and metrology (SEM, TEM, defect review) | High-resolution ≥1nm defect detection | Individual license required | Case-by-case; often denied for advanced nodes |
| Wafer planarization (CMP) | Copper/low-k CMP for ≤14nm | Individual license required | Case-by-case review |
| Cleaning equipment | Single-wafer cleaning for ≤14nm | Individual license required | Less restricted; many approved |
| Test equipment (ATE, probers) | High-frequency testing (>100GHz) | Individual license required | Generally approved for mature nodes |
Japan’s controls have a narrower scope than US BIS rules because they do not include the FDPR mechanism (Japan’s statutory authority does not extend to foreign-produced items). However, Japan’s Foreign Exchange Order applies to re-exports of Japanese-origin equipment from third countries. In practice, Japanese semiconductor equipment exports to China for nodes above 28nm are generally approved, while applications for 14nm and below flagged equipment are consistently denied or subject to prolonged review (8–16 weeks).
China’s Own Export Controls on Semiconductor Materials
China has implemented its own export controls that directly affect semiconductor products and materials leaving China, which in turn impacts global semiconductor supply chains:
- Gallium (Ga) and germanium (Ge) export controls — Effective August 1, 2023, under MOFCOM Announcement 2023 No. 23. Exporters must apply for licenses from MOFCOM and state the end-use and end-user. China controls approximately 80% of global gallium production and 60% of germanium production. These elements are critical for GaAs/GaN RF semiconductors, SiGe BiCMOS processes, and infrared optics used in semiconductor manufacturing.
- Antimony (Sb) export controls — Added to the controlled list in September 2024. Antimony is used in certain semiconductor doping processes and as a flame retardant in electronic packaging. China produces approximately 55% of global antimony.
- Graphite and graphite-related items — Export controls on certain high-purity graphite (December 2024 expansion) affect silicon carbide (SiC) wafer manufacturing, where high-purity graphite crucibles and susceptors are essential production consumables. China’s graphite controls explicitly cite “national security” under PRC Export Control Law Article 15.
- Rare earth permanent magnets — While not strictly semiconductor products, rare earth magnets used in semiconductor manufacturing equipment (wafer handling robots, ion implanters) were added to China’s export control list in October 2024. Export of neodymium-iron-boron (NdFeB) magnets requires MOFCOM approval, affecting equipment maintenance and spare part supply for Chinese-based fabs.
China’s export controls are narrower than US/EU/Japan controls in scope but strategically targeted at materials where China holds a dominant global market position. They represent a supply-chain countermeasure rather than a technology-denial strategy. For foreign semiconductor companies importing controlled Chinese materials, the practical effect is longer lead times (8–16 weeks for license processing) and supply uncertainty.
How Export Controls Affect Different Semiconductor Business Models
- Fabless design companies — Most affected by EDA software controls (no US/EU EDA for advanced-node design in China) and AI chip export restrictions. Cloud EDA access from China-based servers is also restricted under the FDPR. Companies like NVIDIA, AMD, and Qualcomm have developed China-specific chips (e.g., NVIDIA’s H20 with reduced interconnect bandwidth) that comply with export control thresholds while maintaining some China market presence.
- IDMs and foundries — Most affected by equipment controls. SMIC (Semiconductor Manufacturing International Corporation) has been on the Entity List since December 2020, effectively barring the import of US-origin equipment for 10nm and below. For mature-node (28nm+) equipment, license applications are subject to case-by-case review and are often approved.
- OSAT (outsourced assembly and test) companies — Least affected by current controls, as advanced packaging equipment has lower control thresholds than front-end fab equipment. However, 3D packaging/HBM assembly equipment is increasingly subject to scrutiny.
- Semiconductor materials suppliers — Affected by both export controls (SiC substrates, photoresists, specialty gases) and Chinese counter-controls (gallium, germanium, antimony, graphite). Dual-use chemical suppliers face the most complex compliance burden.
- Equipment manufacturers — US, EU, and Japanese equipment makers face the most direct revenue impact. ASML cannot ship TWINSCAN NXT:2000i or any EUV systems to China. Equipment makers have responded by developing China-specific tool variants that operate within allowed technology thresholds.
Compliance Obligations for Foreign Semiconductor Exporters
| Compliance Element | US BIS Requirement | EU Requirement | Japan METI Requirement |
|---|---|---|---|
| Internal compliance program (ICP) | Recommended (voluntary but expected for frequent exporters) | Recommended (EMEA guidelines) | Recommended (voluntary) |
| Entity List screening | Mandatory — check BIS Entity List, MEU List, Unverified List | Mandatory — check EU Consolidated Sanctions List | Recommended — check METI End-User List |
| End-use certification | Required for controlled items (BIS Form 711 or equivalent) | Required under catch-all (Article 4) | Recommended for sensitive items |
| Technology classification | Required — determine ECCN for all items | Required — determine Annex I item category | Required — determine FEFTA controlled category |
| Record-keeping | 5 years (15 CFR 762.2) | 3 years after expiry of license | 5 years (FEFTA Article 55) |
| Screening frequency | Every shipment | Every shipment | Recommended every shipment |
Companies that fail to implement adequate compliance screening face significant penalties. In 2025, BIS imposed over USD 1.8 billion in export control fines globally, with semiconductor-related violations accounting for approximately 25% of total penalties.
Practical Mitigation Strategies
- Develop a product-by-product control list classification — Map every semiconductor product your company exports to the applicable control list (US CCL, EU Annex I, Japan FEFTA list).
- Implement automated denied-party screening — Use a SaaS screening tool to check every China-bound customer and end-user against US, EU, UN, and Chinese sanctions lists.
- Consider China-specific product variants — Restrict the performance of products destined for China to stay below control thresholds.
- Build a 12–18 month inventory buffer — For controlled items that may still receive licenses, maintain 12–18 months of inventory in China-based bonded warehouses.
- Engage PRC-licensed legal counsel — for concurrent Chinese export control compliance on gallium, germanium, antimony, and graphite controls.
- Monitor regulatory change cadence — US BIS rules change every 4–6 months. Subscribe to BIS Federal Register updates, EU TTC outputs, and Japan METI notifications.
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