US chip export rules now require companies to check their customers' customers
What happened
The US Commerce Department has added new rules for companies that make advanced computing chips. These companies must now do more checks to ensure their chips are not going to restricted users, even if they are sold through other companies.
Why it matters
Before this, chipmakers could claim they didn't know where their chips ended up once they sold them to a third party. Now, they are responsible for tracing the chips further down the supply chain. This makes it harder for restricted countries or entities to get advanced computing chips by using intermediaries.
The signal
Watch for how many companies apply for specific licenses or report violations, which would indicate they are taking the new due diligence seriously.