The U.S. CHIPS Act and the New Export Control Rules on Chips – Ongoing Shift in Tech Relations with China and Impact on Licensing
On August 9, 2022, President Biden signed into law the CHIPS and Science Act of 2022 (the “CHIPS Act”), that was first conceptualized during the Trump Administration. On August 25, 2022, the President issued an Executive Order on Implementation of the CHIPS Act of 2022 (the “Order”) outlining certain preliminary measures to facilitate the effective implementation of the CHIPS Act. The CHIPS Act and the Order provide a $280 billion package for financial assistance, tax incentives and other aid to semiconductor and related industry participants to construct, expand, and modernize semiconductor manufacturing facilities and to expand research activities throughout the United States. The CHIPS Act creates a new infrastructure that focuses on securing the future of the American semiconductor supply chain most specially that of the semiconductor workforce.
Other legislation and Executive Orders have built upon the framework created by the U.S. Congress to enable the future competitiveness of the American semiconductor supply chain. The CHIPS Act initiatives expand current US laws designed to protect the security of the U.S. including export controls, investment and ownership rules, and specific “guardrails” directed towards China and its semiconductor industry’s access to advanced U.S. science and technologies for semiconductor manufacturing supercomputer manufacturing and testing equipment, components, and technologies, including numerous restrictions on technology transfers, effectively lowers the threshold expressly for exports to China. Other elements of this framework include an Executive Order issued by President Joe Biden directing the CFIUS to consider whether a foreign investment in the United States under review by CFIUS will “impact U.S. technological leadership.” In addition, it was announced earlier that new regulations for review of outbound investments in sensitive technologies are under development within the administration.
Our distinguished program panelists will discuss the impact of the recent CHIPS legal and policy developments, the short-term and long-term impact on technology-related trade and licensing with China and other nations such as Russia; the current Department of Commerce application process and grant funding timetables and considerations; and a risk analysis for the competitiveness of the U.S. semiconductor supply chain. Areas of consideration will include:
• A quick overview of the CHIPS Act and new the new environment of export control, investment review and China-focused “guardrails”;
• An understanding of ow the new rules restrict technology transfer, licensing of trade secrets as well as the prohibition for sale of chips and equipment?
• How is the Chips Act likely to impact future joint development and local production of ICs required to support international standards?
- The CHIPS ACT IP framework under the NSTC and ACSIC framework;
- Addressing the Core Challenges from an IP perspective;
- Licensing framework under the NSTC and ASIC framework;
- IP threats and risk management
- Science and research development;
- Workforce development;
- The perspective of the U.S. in making your investment decisions; and
- How to apply for grant funding from the Federal and state governments including possible locations for same.
Our panelists addressing these topics are:
- Yuanyou “Sunny” Yang – Partner, Porter Wright Morris & Arthur, LLP. – (Moderator) Sunny is a trade lawyer active in the field of US China Imports, US Commerce Department Controls Compliance/ CFIUS compliance.
- Dr. Richard “Dick” Thurston – Owner, RLT Global Consulting, LLC, former General Counsel, TSMC and former Assistant General Counsel of Texas Instruments.
- Matthew Quigley, Foreign Commercial Service Officer, U.S. Department of Commerce , Montreal (formerly stationed in Beijing and Taipei).
- Richard Steffens, Former Deputy assistant Secretary of commerce for Asia/Director for Asia and Former deputy assistant secretary/Director for Western Hemisphere, – the CHIPS application and funding process.
- Dr. Douglas Grose, Chairman of the Board at NY Creates – NY initiatives and risk management considerations.
Start Time: 16:00
End Time: 17:30
Le Centre Sheraton Montréal 1201 Boul. René-Lévesque O, Montréal, QC, H3B 2L7
PartnerPorter Wright Morris & Arthur
Former TSMC General Counsel (Retired)RLT Global Consulting LLC
Representing The American Semiconductor Innovation Coalition (ASIC)
Principal Commercial Officer US Consulate Montreal