Semiconductor and Advanced Manufacturing Export Controls

Summary#

This is a proposed federal rule, the Order Amending the Export Control List, published in the Canada Gazette on April 25, 2026. It would add new export controls under the Export and Import Permits Act for advanced semiconductor and certain advanced manufacturing equipment, materials, and related technical information — meaning exporters would generally need a permit before shipping these items outside Canada (exports to the United States are excluded).

What it does#

• Adds controls for a range of semiconductor-related and advanced manufacturing items, including:
  • lithography and other chip-making equipment;
  • epitaxial and other semiconductor deposition equipment;
  • high-performance integrated circuits and computers that meet a processing threshold (Total Processing Performance of 6,000 or more);
  • circuit boards or modules containing field-programmable logic devices (FPGAs) above specified sizes;
  • specialized powders (high-entropy alloys or refractory metal powders) treated with inoculants used in metal 3D printing;
  • certain additive manufacturing machines and precision testing equipment.
• Expands the definition of controlled exports to include related “technology” — technical data, assistance, and information needed to make or use these items.
• Consolidates and streamlines existing Group 5 controls on semiconductor manufacturing equipment to make them clearer and more aligned with other parts of the Export Control List.
• Requires exporters (or a Canadian resident acting for a non-resident) to get a permit from Global Affairs Canada before exporting these items to destinations other than the United States.
• This is a proposal (not yet final). The notice invites comments within 30 days of the Part I publication.

Who's affected#

• Businesses that trade in or use advanced semiconductor equipment, high-end microprocessors, FPGAs, certain additive-manufacturing powders, and related tooling.
• Universities and research labs that might export specialized technical information or equipment (expected to be only a small number of cases).
• Customs and enforcement bodies that check export permits, including the Canada Border Services Agency and the Royal Canadian Mounted Police.
• Global Affairs Canada, which would review and decide permit applications.
• Foreign buyers and partners who import these goods from Canada, and international suppliers whose trade relationships with Canadian firms may be influenced by aligned export controls.
• If unclear: the Gazette says most of the listed items are minimally or not produced in Canada today, so the direct domestic manufacturing impact may be small.

Why it matters#

• These technologies can be used in advanced military systems (for example, AI, aerospace, and precision weapons). The proposed controls aim to reduce the risk they are exported to actors who could use them against Canada’s security or international peace and security.
• Bringing these items under permit controls helps keep Canada aligned with allies. That alignment can make it easier for Canadian firms to buy or receive sensitive parts from partners who want assurance Canada has comparable rules.
• For businesses and researchers, most impacts are expected to be administrative — one estimate in the proposal put the incremental cost per permit application at $18.91, and projected 15 new applications in Year 1 rising to 22 by Year 10 — but delays or a denied permit could affect specific deals or projects.
• The proposal covers not only physical exports but also transfers of technical information, so researchers and companies must check whether planned collaborations or data-sharing fall under the controls.