The U.S. Department of Commerce, through its Bureau of Industry and Security (BIS), continues to actively pursue investigations under Section 232 of the Trade Expansion Act of 1962. These investigations aim to determine whether specific imports threaten to impair U.S. national security. In recent months, BIS has significantly broadened the scope of its inquiries, reflecting heightened concerns over supply chain resilience, critical infrastructure, and technological competitiveness. This alert provides an overview of the currently active investigations and offers practical guidance for stakeholders, including how to participate in the public comment process.

Semiconductors are critical components that form the foundation of virtually all modern technologies and industries, including computers, smartphones, consumer electronics, automobiles, and medical devices. Their global importance continues to grow. This blog provides an overview of recent legal developments in the semiconductor markets of Japan and the United States.

In a significant decision announced last week, the Department of Justice (DOJ) declined to prosecute a private equity (PE) firm after the firm voluntarily disclosed sanctions and export control violations committed by a portfolio company the firm acquired. This result, and the government’s joint enforcement actions against the portfolio company and its former CEO, offer several important takeaways:

• It is critical for PE firms to conduct robust, non-siloed due diligence for trade and other compliance both before and after acquisition.

• Sanctions and export controls enforcement remains a key government focus, as evidenced by the extensive behind-the-scenes coordination between Justice, Treasury, Commerce, and Homeland Security.

• It is not uncommon for private equity firms to acquire a company and then discover hidden problems. Firms that promptly investigate, self-report, cooperate, and remediate can avoid criminal prosecution, even for serious violations.

• The government continues to hold individuals personally responsible for violations of sanctions and export controls regulations.