Chip Compliance Essentials

Recently, the United States has continued its global layout and continued to exert pressure to prevent China from obtaining advanced chips. However, contrary to expectations, China's chips have ushered in an important breakthrough. A research team from Tsinghua University has developed a chip called "Tai Chi", which is the world's first large-scale interference-diffraction heterogeneous integrated chip.

Since the production of chips and other electronic products requires the use of a large amount of raw materials, chemicals and various processes, involves a large number of hazardous chemicals, and there is a risk of leakage of toxic and harmful gases, it is an important task of national hazardous chemical safety supervision. Therefore, relevant chip companies should comply with relevant laws and regulations when using chemicals.

一、Regulations on the management of electronic chemicals

1、Hazardous chemicals

During the production and preparation process of chips, a large number of chemicals such as acids, alkalis, alcohols, ketones, esters, hydrocarbons, and halogenated hydrocarbons are used. Most of the chemicals are highly oxidizing, corrosive, and volatile. There are 80 types of chemicals. According to the "Classification and Labeling of Commonly Used Hazardous Chemicals GB13690-2016", hazardous chemicals are classified according to their hazardous characteristics, which involves the import registration of hazardous chemicals. According to the "Regulations on the Safety Management of Hazardous Chemicals" (State Council 591) Order), the state implements a hazardous chemicals registration system to provide technical and information support for the safety management of hazardous chemicals as well as hazardous chemical accident prevention and emergency rescue.

2、Precursor chemicals

Toluene, acetone, sulfuric acid and other substances are involved in chip production. If the concentration is higher than 40%, an import license for dual-use items and technologies should be obtained. The following mixtures are considered precursor chemicals:

• Goods containing one of the four precursor chemicals, toluene, acetone, methyl ethyl ketone, and sulfuric acid, with a proportion higher than 40% (exclusive), and goods containing hydrochloric acid with a proportion higher than 10% (exclusive).
• Goods of other precursor chemicals other than the above 5 listed in the "Catalogue of Import and Export Administration of Precursor Chemicals".
• Compound pharmaceutical preparations containing precursor chemicals are excluded.

3、Photoresist, ink and other chemicals

On December 29, 2023, an announcement was issued on optimizing service management measures for some specific products containing v-butyrolactone to improve service efficiency, protect the industrial supply chain, and provide more efficient and convenient services for high-tech industries.

4、Hazardous waste management regulations

The chip industry faces strict requirements for the disposal of discarded electronic equipment and waste disposal, including recycling, reuse and compliance. It mainly includes waste gas, waste water, solid waste, and even a class of pollutants. Taking waste gas as an example, the emission standards of the chip industry require companies to collect all waste gas. Its design specifications require backup treatment measures and treatment efficiency requirements, so the treatment measures are required to be high.

5、List of Prohibited Substances (ROHS)

ROHS regulations require the restriction of the use of specific hazardous substances in semiconductor products, such as lead, mercury, cadmium, etc.

6、"Opinions on Further Strengthening the Prevention and Control of Heavy Metal Pollution"

National development trends: The country has improved the heavy metal pollutant standard system, studied and revised pollutant emission standards for lead, zinc, electroplating and other industries, and accelerated the formulation and introduction of technical specifications for the installation, operation and acceptance of wastewater heavy metal online monitoring systems. In the electronics, chip and semiconductor industries, heavy metal substances are used and should be registered and produced according to the corresponding regulations.

二、Import and export trade management regulations

1、"Catalogue of China's Export Prohibited and Restricted Technologies"

In order to strengthen the management of technology import and export, in accordance with the "Foreign Trade Law of the People's Republic of China" and the "Regulations of the People's Republic of China on the Administration of Technology Import and Export", the Ministry of Commerce and the Ministry of Science and Technology Announcement No. 57 of 2023 on the announcement of the "China's Catalog of Prohibited and Restricted Export Technologies". This revision significantly deletes the "Catalog", refines the control points of some technical items, and creates positive conditions for strengthening international technological cooperation.

2、"Export License Management Goods Catalog (2024)"

In accordance with laws, administrative regulations and rules such as the Foreign Trade Law of the People's Republic of China, the Regulations of the People's Republic of China on the Administration of Import and Export of Goods, the Regulations on the Administration of Ozone Depleting Substances, the Measures for the Administration of Goods Export Licenses, the "Catalogue of Goods under Export License Management (2024)" (hereinafter referred to as the catalog) and related matters are hereby announced. Foreign trade operators who export goods listed in the catalog should apply to the Ministry of Commerce or the local commercial department authorized by the Ministry of Commerce to obtain an "Export License of the People's Republic of China" (hereinafter referred to as the "Export License"), and go through customs clearance and release procedures with the customs based on the export license.

3、Gallium and germanium related items are subject to export control

On July 3, 2023, the Ministry of Commerce and the General Administration of Customs issued an announcement on the implementation of export controls on gallium and germanium-related items, and implemented an export license approval system for related items. Export operators shall issue export licenses to the customs, handle customs procedures in accordance with the provisions of the Customs Law of the People's Republic of China, and accept customs supervision. The customs will handle the inspection and release procedures based on the export license issued by the Ministry of Commerce.

三、Supply chain risk management

The chip supply chain is the core of the global high-tech industry, involving design, manufacturing, packaging and testing. There are many risks in the chip supply chain, including technology risks, supply chain risks, geopolitical risks, etc. Enterprises need to establish a complete risk management mechanism and strengthen supplier management, inventory management, risk assessment and other aspects. The government needs to strengthen supervision and policy support to improve the stability and security of the chip supply chain.

四、Corporate Compliance Guide

1、If the imported chemicals of the enterprise are listed in the "Catalogue of Hazardous Chemicals", it must implement the "Registration Management Measures of Hazardous Chemicals" and conduct hazardous chemical import registration of hazardous chemicals.

2、If the chemicals imported by the enterprise belong to "precursor chemicals", they need to apply for an import license for dual-use items and technologies.

3、Enterprises need to pay attention to whether the goods are controlled substances under export control. If they are controlled substances, they should go through customs clearance procedures in accordance with relevant laws and regulations.

4、Enterprises should pay attention to the upstream and downstream industrial chains, identify risk signals and establish compliance management processes.