Advanced semiconductor and manufacturing export controls

Summary#

This is a proposed Order Amending the Export Control List published on April 25, 2026. It would add a range of advanced semiconductor and manufacturing items to Canada’s export controls and require export permits for them (except for exports to the United States).

What it does#

• Adds controls under Group 5 (Miscellaneous Goods and Technology) of the Export Control List on specific semiconductor and advanced manufacturing items, such as:
  • lithography equipment and masks/reticles used to make advanced microchips,
  • epitaxial and other semiconductor deposition equipment,
  • certain scanning electron microscopes and cryogenic wafer probing tools,
  • circuit boards containing reprogrammable chips (FPGAs) and very high‑performance processors,
  • advanced computing integrated circuits and the computers/electronic assemblies that contain them,
  • specialized metal powders (high‑entropy or refractory alloys) treated with inoculants used in metal additive manufacturing.
• Extends controls to the related “technology” — including technical data and assistance — not just physical goods.
• Consolidates and clarifies existing Group 5 controls on semiconductor manufacturing equipment so the rules read more clearly and align with similar controls in Group 1.
• If adopted, exporters (residents of Canada or those acting through a resident) would need a permit from Global Affairs Canada before exporting the newly controlled items to destinations other than the United States.
• This is a proposal. Comments are invited for 30 days after publication (i.e., within 30 days after April 25, 2026). The government says, if made final, the Order would come into force 30 days after its publication in Canada Gazette, Part II.

Who's affected#

• Semiconductor industry and suppliers of advanced chip‑making equipment.
• Advanced manufacturing firms that use metal additive manufacturing (3D printing) with specialized powders.
• Universities and researchers that work on cutting‑edge semiconductor or related technologies (the controls exclude “public domain” and basic research in many cases, but some technical transfers may need permits).
• Exporters and customs brokers who ship these items from Canada to non‑US destinations. Non‑resident exporters typically must use a Canadian resident or broker to apply.
• Government agencies involved in enforcement and processing: Global Affairs Canada, Canada Border Services Agency, and the Royal Canadian Mounted Police.
• The item notes that most of these advanced items are currently minimally or not at all produced in Canada, so domestic industry impacts are expected to be small.

Why it matters#

• The changes are meant to reduce the risk that powerful chip‑making tools, high‑performance processors, or advanced printed‑metal parts are diverted to military or other uses that could harm Canada’s or allies’ security.
• The Order aims to keep Canada aligned with allies that are putting similar limits on exports of sensitive semiconductor and manufacturing technology. That alignment can matter for whether other countries are willing to sell or ship sensitive items through Canada.
• For businesses and researchers the practical effects are mostly administrative: permits will be required for exports outside the United States. The government estimates a small per‑application administrative cost of about $18.91, and projects roughly 15 new applications in Year 1 rising to 22 in Year 10, with an annualized administrative cost of about $128 for affected firms.
• The proposal could affect research collaborations and supply chains if partner countries change export behaviour in response to controls. The government consulted industry and academia and says the items are largely not produced domestically, so direct economic disruption is expected to be limited.