New Export Controls for Quantum and Semiconductors

Summary#

The Order Amending the Export Control List: SOR/2024-112 adds certain quantum-computing items and advanced semiconductor-manufacturing tools to Canada’s Export Control List. From foreign destinations other than the United States, exporters will generally need a permit to send these specific technologies abroad. The Order was published on June 19, 2024 and comes into force 30 days after publication (around July 19, 2024).

What it does#

• Adds a new item in Group 5 (Miscellaneous goods and technology) to control:
  • Quantum computing systems and related parts and components. The controls target machines and parts that meet specific technical thresholds, starting at systems that support 34 physical qubits and going up through much larger systems (thresholds are defined in steps up to 2,000 qubits and above). The rules also include technical limits on two-qubit gate error rates (C‑NOT error) for those ranges.
  • Cryogenic integrated circuits (cryogenic CMOS) that operate at 4.5 K (Kelvin) or colder.
  • Semiconductor manufacturing items used to make advanced transistor structures (Gate-All-Around FET / GAAFET), including:
    • Dry-etching equipment with measures like silicon‑germanium to silicon etch selectivity ≥ 100:1, fast gas switching < 300 ms, and electrostatic chucks with 20 or more individually controlled elements.
    • Masks, reticles and imprint lithography templates for advanced chips.
  • High-end Scanning Electron Microscope (SEM) equipment able to image chips at very fine detail, with technical limits such as stage accuracy < 30 nm, image storage greater than 2 × 10^8 pixels (about 200 million pixels), FOV overlap < 5%, stitching overlap < 50 nm, and accelerating voltage > 21 kV.
  • Software and technology tied to development, production or recovery of the above items (for example, software to extract GDSII layout data from SEM images).
• Keeps the usual exception: exports of these items to the United States do not require a Canadian permit.
• Makes a small editorial wording change in item 5504 so its language matches the Guide used with the list.

Who's affected#

• Companies that build or export quantum computers and related components. The government estimates about six Canadian companies may currently be in scope.
• Semiconductor-equipment makers, suppliers of specialized SEMs, and any businesses that export advanced chip-making tools or related software and technical information.
• Researchers and university labs that develop or transfer the specific controlled technologies (but basic scientific research and public-domain information are excluded).
• Exporters in general who will need to use the export-permit system for shipments to destinations other than the United States.
• Enforcement and export-control staff at Global Affairs Canada, the Canada Border Services Agency, and the Royal Canadian Mounted Police (first mention of each organization in that section).

Why it matters#

• These technologies can have both civilian and military uses. The government says strong controls help stop high-end quantum and chip-making tools from being used to harm national or allied security (for example, by enabling advanced weapons or breaking widely used encryption).
• For most Canadian businesses and researchers the change should be limited. Officials expect only a small number of permit applications—about six per year—and that the rule will not affect routine academic work or public-domain research.
• There will be some administrative work: exporters may need to register and apply for permits. The Department estimates total national costs under $1 million per year and an average additional administrative burden of about $39 per affected business under the one-for-one rule.
• Permit review times are typically about 10 business days for low‑risk destinations and about 40 business days when broader consultations are needed, so export timelines could be affected depending on destination and the item.