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There is no permanent U.S. list of semiconductor tools that are simply “allowed” or “banned” for China. A shipment is lawful only after the exporter checks the item’s ECCN and technical specifications, confirms that the item is subject to the Export Administration Regulations (EAR), evaluates the destination and any third-country routing, and screens the end use and end user. Section 744.23 of the EAR adds prohibitions and licensing requirements for covered semiconductor-manufacturing and advanced-node activities. A tool that can ship in one configuration or for one customer may require a license—or be prohibited—in another transaction.
The short answer: classify the exact transaction, not just the machine
U.S. export controls reach semiconductor-manufacturing equipment, software, parts and some foreign-produced items, not only finished chips. The controlling result depends on the equipment’s design and performance, its ECCN and Commerce Control List (CCL) entry, the destination, the manufacturing stage, the customer, and the proposed use. China, Hong Kong and Macau must be treated as high-risk destinations for this analysis, and routing through another country does not remove a China-related control.
As a practical rule, do not describe a tool as “exportable to China” until a transaction-specific review has answered all of these questions:
- What is the precise model, configuration, software version and performance?
- What ECCN applies, and is the item subject to the EAR under the foreign-produced-item rules?
- Will it be used for advanced-node integrated-circuit production, a supercomputer-related activity, or another controlled semiconductor-manufacturing use?
- Who will receive, own, operate, install or ultimately benefit from it?
- Is the customer or an affiliated party on the Entity List or another restricted-party list?
- Does a license exception, notification, advisory opinion or specific BIS license actually cover this exact shipment?
Which equipment families are covered?
The Bureau of Industry and Security’s December 2, 2024 controls added 24 types of semiconductor-manufacturing equipment and three types of software tools. The action covers specified equipment families rather than every machine used in a fab. The CCL entries and their technical parameters determine whether a particular model falls inside a controlled description.
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| Equipment or software family | What the controls can reach | What an exporter must verify |
|---|---|---|
| Etch | Specified plasma or other etch systems used to remove material during wafer processing. | Process type, capability, configuration and the exact CCL technical thresholds. |
| Deposition | Specified systems that build dielectric, metal or other thin films. | Deposition method, materials, wafer capability and listed performance limits. |
| Lithography | Specified exposure and related lithography equipment. | Resolution-related capability, alignment and other parameters stated in the CCL. |
| Ion implantation | Specified implant equipment used to introduce dopants into wafers. | Energy, current, wafer handling and other characteristics in the applicable entry. |
| Annealing | Specified thermal-processing systems used after implantation or other wafer steps. | Temperature, uniformity, atmosphere, wafer size and listed control thresholds. |
| Metrology and inspection | Specified measurement, defect-inspection and process-control equipment. | Measurement function, resolution, throughput and whether the system is covered as configured. |
| Cleaning | Specified wafer and process-cleaning tools. | Cleaning method, process capability and the CCL description. |
| Software tools | Three categories of software associated with semiconductor manufacturing and design functions in the 2024 action. | Function, version, delivery method and the software-specific ECCN and end-use rules. |
This table is a map of controlled families, not an authorization list. Similar-looking tools can receive different outcomes because a model falls above or below a technical threshold, is configured differently, or is classified under a different ECCN. The current CCL text, including notes and definitions, is controlling.
How to determine whether a shipment needs a license
1. Establish EAR jurisdiction
Start by determining whether the item is a U.S.-origin item or otherwise subject to the EAR. A foreign-made tool, component or software package can still be controlled under the EAR’s foreign-produced-item rules when it meets the relevant product, technology, software or de minimis conditions. Document the origin of major content, the production location, and any applicable U.S. technology or software inputs.
2. Classify the item by ECCN
Use the manufacturer’s classification only as supporting evidence. Confirm the ECCN against the current CCL entry and compare every technical parameter with the machine as shipped, including options, firmware, embedded software and service kits. If the item is not described by a specific ECCN, the classification may be EAR99, but EAR99 does not mean automatically permitted: end-use, end-user, destination and other controls can still require a license or prohibit the transaction.
3. Apply the destination controls
China is not assessed only by the buyer’s mailing address. Check the destination of the export, reexport or transfer, including Hong Kong and Macau, and identify every intermediate location. A proposed shipment to a distributor, repair center or logistics hub needs the same diversion analysis as a direct shipment to a fab.
4. Test the end use under EAR §744.23
Section 744.23 creates additional restrictions for specified semiconductor-manufacturing and advanced-node uses. The analysis can turn on what the item will do, not merely what it is called. Determine whether the tool, part or software will be used to produce covered integrated circuits, support advanced-node production, or facilitate a controlled supercomputer-related activity. Obtain a detailed process description and the facility’s production plans rather than relying on a generic purchase order.
5. Screen every relevant party
Screen the purchaser, consignee, end user, ultimate parent, owners, installers, maintenance providers and known downstream users against the Entity List and other applicable restricted-party lists. Entity List status can independently create a license requirement or a presumption against approval. Ownership, shared facilities and common directors can reveal a listed party even when the contracting entity is not listed under the exact name shown in the order.
6. Check available authorizations
Only after the item, destination, end use and end user are established should you test a license exception, notification procedure, advisory opinion or specific BIS license. Read the conditions literally: an authorization may cover one ECCN, consignee, end use, quantity, validity period or service activity and not another. Keep the classification worksheet, screening results, technical datasheets, customer statements and license correspondence with the export record.
Can a foreign-owned fab in China buy U.S. tools?
Foreign ownership is not a license-free solution. In its August 29, 2025 action, BIS removed the former license-free pathway associated with the Validated End-User (VEU) arrangement for affected foreign-owned semiconductor facilities in China. Former VEU participants were given 120 days to apply for licenses. BIS stated that licenses were intended to support existing operations; applications for capacity expansion and technology upgrades were not expected to be approved under that policy.
The practical consequence is a narrower question than “Is the fab foreign-owned?” An exporter must ask whether the facility was a former VEU participant, whether its authorization remains valid during the transition, what activity the proposed tool supports, and whether the application concerns maintenance of existing production or expansion. A foreign parent, joint venture or non-Chinese management team does not by itself remove the China destination, end-use or end-user controls.
Because VEU status and licensing policy can change, confirm the facility’s current authorization and the applicable Federal Register text before accepting an order. Do not treat an old VEU approval, a previous shipment or a customer’s foreign incorporation as continuing permission.
Are parts, spare modules and service shipments controlled?
Yes. Controls are not limited to complete production tools. BIS clarified in 2024 that parts and components exported for incorporation into indigenous Chinese semiconductor-manufacturing equipment require a license for the initial export. A replacement power module, wafer stage, vacuum component, control board, sensor or software key therefore needs its own jurisdiction, classification and end-use analysis.
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Ask the customer where the part will be installed, which equipment it will support, and whether the equipment is being developed or manufactured in China. “Spare part,” “evaluation sample” and “repair return” are descriptions, not automatic exemptions. Service engineers also need authorization when their work transfers controlled technology, software or technical assistance.
Can a company ship through a third country?
Routing through a third country is not a safe harbor. The exporter must evaluate reexport, transfer and diversion rules and disclose the true ultimate destination. BIS’s 2026 enforcement case involving Applied Materials concerned ion implanters sent through Korea before reaching China and resulted in a $252 million penalty. The case illustrates why a clean bill of lading or an apparently unrelated consignee does not cure a prohibited or unlicensed China transaction.
Before shipping, compare the logistics plan with the customer’s production site, installation address, payment path, freight forwarder, service personnel and stated end use. Warning signs include requests to remove Chinese references from documents, unusual routing, a newly formed intermediary, inconsistent equipment specifications, or instructions to deliver to a warehouse that cannot explain the final user. Pause the transaction and seek export-control advice when the customer will not provide a complete end-user and end-use statement.
What the 2026 advanced-chip policy does—and does not—change
On January 13, 2026, BIS adopted a case-by-case policy for exports of certain advanced chips, including Nvidia H200 and AMD MI325X, subject to customer-compliance, capacity-protection and independent U.S.-testing conditions. That decision concerns finished computing chips. It is not a general authorization to export lithography, etch, deposition, implant, metrology, cleaning equipment or their parts to China.
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How to build a defensible export decision
- Freeze the product identity. Record manufacturer, model, serial range, configuration, options, firmware, software version and whether the shipment includes spares, manuals or technical assistance.
- Map the technology. Obtain datasheets and process capability information from engineering. Identify whether the tool performs etch, deposition, lithography, implantation, annealing, metrology, inspection, cleaning or a covered software function.
- Document jurisdiction and ECCN. Analyze U.S. content and foreign-produced-item rules, then cite the specific CCL entry and technical paragraphs used for classification.
- Trace the transaction. Identify exporter, purchaser, consignee, installer, operator, ultimate end user, owners, parent companies and every transit country.
- Describe the end use precisely. State the fab location, wafer process, node or production purpose, expected quantities and whether the activity involves advanced-node ICs, supercomputing or indigenous Chinese equipment.
- Run restricted-party and diversion screening. Check the Entity List and other lists at order acceptance, before shipment and when material transaction facts change.
- Choose the authorization path. Determine whether a license exception or notification genuinely applies; otherwise prepare a complete BIS license application or request an advisory opinion before committing the shipment.
- Control fulfillment. Give freight forwarders and service teams written routing and consignee instructions, retain records, and stop shipment if the customer changes the destination, model, use or end user.
Common mistakes and the correct response
| Mistake | Why it fails | Better control |
|---|---|---|
| Using a generic “allowed equipment” list | Technical thresholds and policy changes can make a model-specific result different. | Reclassify the exact configuration against the live CCL before each material shipment. |
| Assuming EAR99 means no license | End-use, end-user, Entity List and destination rules can still apply. | Complete the full transaction review, not just the tariff-style classification. |
| Relying on foreign ownership | The 2025 VEU change removed the former shortcut for affected participants. | Verify current VEU status and obtain the required license for the actual operation. |
| Shipping parts as ordinary maintenance | Parts for indigenous Chinese equipment can require a license at initial export. | Identify the host tool and Chinese manufacturing purpose for every part. |
| Using a third-country distributor | Reexport and diversion rules follow the true destination and end use. | Disclose the complete route and ultimate user; investigate anomalies. |
| Borrowing the 2026 chip policy | That policy applies to specified chips, not manufacturing equipment. | Apply the equipment’s own ECCN and §744.23 analysis. |
What exporters should monitor
BIS rules and licensing policies are volatile. Recheck the live EAR, CCL, Entity List, Federal Register notices and any written BIS authorization immediately before shipment and whenever the customer, route, facility or product configuration changes. The December 2024 action added 140 Entity List entries and modified 14 others, demonstrating that screening data can change independently of an equipment rule.
Maintain an audit trail showing who classified the item, which technical facts were used, what lists were screened, how the end use was verified, and why the chosen authorization applies. For complex tools, indigenous-equipment parts, foreign-produced items or uncertain routing, specialist export-control counsel can help resolve classification and licensing questions before a shipment creates an enforcement problem.
Bottom line
Some semiconductor equipment can still be exported to China, but “can” means the specific item and transaction survive a current EAR review. The 2024 controls reach 24 equipment types and three software-tool types; §744.23, Entity List restrictions, foreign-produced-item rules, the 2025 VEU change and anti-diversion enforcement can add independent barriers. Classify the exact tool, test its technical capability and end use, screen every party, obtain the required BIS authorization, and treat third-country routing and parts shipments with the same scrutiny as a direct sale.
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