Yesterday the Commerce Department announced export controls on quantum computing technologies as well as new controls for advanced semiconductors and additive manufacturing technologies.

AIP’s FYI has posted a good summary of the news: “The controls cover key equipment, materials, and software used in quantum computers as well as complete computers that exceed certain performance specifications. The department stopped short of requiring licenses for foreign nationals to work with these technologies in the U.S., instead implementing new disclosure requirements for citizens of certain countries. However, it has reserved the right to add license requirements in the future and is seeking input on what effects they would have.”

“The rule states that insisting on deemed export licenses for all D:1 and D:5 country nationals would be “devastating to the continued progress of future developments in the quantum field.” It instead requires entities that share controlled quantum technology with foreign nationals from these country groups to keep records of what information they release and to whom,” reported FYI.

In the official announcement, the Commerce Department said, “The most effective way to protect our national security is to develop and coordinate our controls alongside like-minded partners, and today’s actions demonstrate our flexibility in how we craft such controls to achieve our national security objective,” said Assistant Secretary of Commerce for Export Administration Thea D. Rozman Kendler, in the official announcement, adding “Not only are we adopting new emerging technology controls with this rule, we are also building increased agility into our system with a new license exception for trusted partners.”

“As critical technologies with military applications continue to emerge and evolve, there is an increased need to regulate their movement to ensure these items are not used for purposes contrary to U.S. national security or foreign policy,” said the Commerce Department.

With the IFR (interim final rule), BIS (Bureau of Industry and Security) is implementing worldwide export controls on specific types of items, including:

• Quantum Computing Items: quantum computers, related equipment, components, materials, software, and technology that can be used in the development and maintenance of quantum computers.
• Advanced Semiconductor Manufacturing Equipment: tools and machines that are essential for the production of advanced semiconductor devices.
• Gate All-Around Field-Effect Transistor (GAAFET) Technology: technology that produces or develops high-performance computing chips that can be used in supercomputers.
• Additive Manufacturing Items: Equipment, components and related technology and software designed to produce metal or metal alloy components.

The controls cover key equipment, materials, and software used in quantum computers as well as complete computers that exceed certain performance specifications. The department stopped short of requiring licenses for foreign nationals to work with these technologies in the U.S., instead implementing new disclosure requirements for citizens of certain countries. However, it has reserved the right to add license requirements in the future and is seeking input on what effects they would have.

The FYI article by Clare Zhang reported:

“The quantum controls on exports to certain allies enter into effect on Nov. 5 while the rest of the new controls went into effect the day of the announcement, Sept. 6. The rule includes a request for public comment specifically on the prospect of adding deemed export license requirements for D:1 and D:5 countries, as well as ideas for ways of addressing national security concerns without using deemed export licenses. BIS will accept comments on the new rule through Nov. 5.

“Carl Williams, a quantum technology consultant and former NIST scientist, said that aligning U.S. controls with international partners is a positive move but that the new reporting requirements pose a nontrivial burden for startups and other small quantum companies.

“If you look what could have happened, I would say this was good news. If you look and ask whether this actually helps, it’s still a heavy lift, especially for the small companies, the reporting requirements, especially around deemed exports,” Williams said.

“There have been several reports by the U.S. government and others that basically show that half of the quantum-enabled technical workforce… are foreigners in the U.S., and the biggest group is from China,” Williams said. If companies want to keep drawing from that labor pool, they will need to have in-house lawyers or other export control experts, which many small quantum companies do not have, he added.

Link to Commerce Department release, https://www.bis.gov/press-release/department-commerce-implements-controls-quantum-computing-and-other-advanced

Link to FYI report, https://ww2.aip.org/fyi/us-puts-export-controls-on-quantum-computers