The Clock Is Ticking to Additional Export Controls: Under Secretary Estevez Explains the Rules, but Questions Remain

Will YMTC get added to the Entity List?
Let’s countdown.


BIS’s New Export Controls

On October 7, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) issued new export controls targeting Chinese chipmakers. In addition, BIS added 31 Chinese entities – including YMTC – to its Unverified List (UVL), what seems to be a precursor before being placed to the Entity List.

The new export control rules are having an immediate impact. It has been reported that American semiconductor manufacturing equipment companies such as KLA Corp, Applied Materials, and Lam Research are hitting pause on their operations in China and pulling out their staff based at YMTC as well as Dutch semiconductor company, ASML.

China Tech Threat released a memo on key areas that policymakers, analysts, and media should follow as BIS implements these new export controls targeting China. The 60-day window ending December 6 will be critical.

5 Key Issue Areas to Monitor:

Expert Opinions

“Being added to the unverified list used to be a nuisance. Now it should be terrifying.”
Gregory Allen, CSIS

“The chances of YMTC being added to the “entity list” at 99 per cent.”
Kit Conklin, Atlantic Council

“These restrictions on the transfer of advanced U.S. manufacturing technology are absolutely necessary, but there is still much more that needs to be done to stop the Chinese Communist Party from cheating and stealing its way to technological dominance… I continue to urge the Biden administration to act swiftly on other export control actions and to add YMTC to the Entity List to protect America’s technology supply chains and American consumers.”
Senate Majority Leader Chuck Schumer

“I see these export controls as being hugely consequential. It goes straight to the heart of Beijing’s efforts to create a domestic world class semiconductor industry.”
Martijn Rasser, CNAS

“The US government’s new export controls are wreaking havoc on China’s chip industry. New rules around “US persons” are driving an “industry-wide decapitation.”
-Jordan Schneider, Rhodium Group

If you want to learn more about how these recent events have unfolded, please visit our Apple-YMTC page.