Export Controls: Commerce Implemented Advanced Semiconductor Rules and Took Steps to Address Compliance Challenges

What GAO Found

In October 2022, the Department of Commerce's Bureau of Industry and Security (BIS) issued a new rule to control the export of advanced semiconductors and related manufacturing equipment. Advanced semiconductors can be used for artificial intelligence, including in medical diagnosis and for military purposes, such as modeling nuclear explosions.

Engineer Holding a Semiconductor

Why GAO Did This Study

GAO was asked to report on BIS's development and implementation of three advanced semiconductor and related manufacturing equipment export control rules promulgated in 2022 and 2023, as well as what is known about private sector compliance efforts. This report provides information on steps BIS has taken and plans to take, and on the roles of other U.S. agencies in developing, implementing, and enforcing the rules and in engaging with foreign partners. It also provides information on compliance steps companies have taken and challenges they have encountered, based on private sector public comments on the rules, as well as GAO interviews with Commerce and representatives from four advanced semiconductor industry companies, and two industry associations. GAO selected the companies that fulfilled specific criteria, such as whether they had developed, manufactured, or sold a product targeted by the rules, or submitted a public comment to the rules. GAO selected external counsel and industry associations based on a number of criteria, such as whether they had submitted a public comment on the rules or represented multiple companies in the U.S. semiconductor industry. In addition, the report describes steps Commerce has taken to address these challenges. A forthcoming GAO report will examine the steps BIS has taken to enforce the export control rules on advanced semiconductors and related manufacturing equipment, as well as BIS efforts to engage with key foreign partners regarding the rules. An additional forthcoming GAO report will examine BIS's processes and resources to control exports more broadly.

For more information, contact Nagla'a El-Hodiri at (202) 512-7279 or [email protected].