New Export Controls on Semiconductors

Summary#

The federal government published a proposed Order Amending the Export Control List on April 25, 2026. If moved forward, it would add a range of semiconductor and advanced‑manufacturing items to the Export Control List under the Export and Import Permits Act, meaning exporters would generally need a permit before shipping those items out of Canada.

What it does#

• Adds controls for a set of semiconductor manufacturing equipment and related technologies, including:
  • lithography equipment;
  • epitaxial depositioning equipment and other semiconductor deposition tools;
  • equipment used in advanced etching and masks/reticles for leading‑edge chips;
  • boards or modules containing reprogrammable logic devices (FPGAs);
  • advanced computing integrated circuits and assemblies (a performance threshold of 6,000 Total Processing Performance is used to identify the most powerful chips);
  • specialized metal powders for additive (3D) printing that are treated with inoculants.
• Covers both the physical goods and related “technology” (technical data, assistance, etc.) needed to develop, produce or use those items.
• Consolidates and streamlines existing Group 5 controls about semiconductor manufacturing to make the rules clearer.
• Would require exporters to obtain a permit from Global Affairs Canada for exports to destinations other than the United States.
• The Order’s stated plan is for it to come into force 30 days after it is published in Canada Gazette, Part II.
• Service expectations for permit decisions: in many cases a decision is expected within 10 business days, or within 40 business days when broader consultations are needed.

Who's affected#

• Companies that make, trade, or use advanced semiconductor manufacturing equipment and parts.
• Businesses and researchers involved in advanced computing chips, high‑performance electronics, and certain additive‑manufacturing powders.
• A small number of universities or research teams that export technical information about the newly controlled items.
• Government agencies that enforce and process permits, notably Global Affairs Canada, Canada Border Services Agency, and the Royal Canadian Mounted Police.
• It is unclear from the notice whether any specific Canadian firms currently export these exact items; the government says most of the items are not produced in Canada now.

Why it matters#

• The move aims to limit the spread of technologies that could be used in military systems (for example, in high‑performance computing, AI, aerospace, or precision weapons).
• Aligning controls with allies may keep Canada plugged into international supply chains; the government says partners could restrict exports to Canada if it lacks comparable controls.
• Practically, the change mainly adds paperwork and a permit step for exports. The government estimates a small number of new permit applications (about 15 in Year 1, rising to 22 by Year 10) and an average administrative cost to exporters of about $18.91 per application. It estimates an annualized administrative burden across affected businesses around $128.
• Because most of these items are reportedly not currently made in Canada, the department assesses the immediate impact on Canadian industry as limited.