US said to be weighing broad new restrictions on chip exports

US Considers Stricter Controls on AI Chip Exports

A view of the American flag by the Golden Gate Bridge in San Francisco, California, captured on January 23, 2023. The bridge is set to receive a $400 million federal grant for seismic upgrades, following the passage of a bipartisan infrastructure bill aimed at improving bridges nationwide. Photo by Benjamin Fanjoy/Bloomberg via Getty Images.

Since Donald Trump assumed the presidency, the direction of US policy regarding semiconductor exports has been uncertain. Recent developments, however, have shed light on the administration’s intentions.

US officials have reportedly prepared draft regulations that would require government authorization before AI chips could be shipped outside the country. This move would grant the US far greater oversight over companies such as Nvidia and AMD.

TechCrunch has reached out to AMD, Nvidia, and the US Department of Commerce for their perspectives on these proposed measures.

Under these draft rules, both foreign companies and governments would need approval from the US Department of Commerce to acquire these advanced chips. The level of scrutiny would depend on the scale of the transaction—a small purchase might only need a basic review, while larger deals could require involvement from the buyer’s national government.

Although these regulations are not yet finalized and could change, the proposal signals a significant increase in government intervention compared to the AI Diffusion rule introduced by President Joe Biden. Notably, the Trump administration officially revoked Biden’s regulation last May, just days before it was set to take effect.

While this is the first glimpse of what comprehensive export restrictions might entail, it is not entirely unexpected given the Trump administration’s previous actions regarding Nvidia’s exports to China. The administration reversed its stance several times on whether Nvidia could sell its advanced AI chips to China, ultimately deciding to allow exports if the Department of Commerce approved the buyers.

This heightened regulatory approach could have negative consequences for US chipmakers and the country’s leadership in the global AI sector. As it becomes more challenging to obtain US-made chips, international companies may increasingly seek alternatives, especially as foreign manufacturers continue to advance their own technologies.

For Nvidia, the impact is already being felt. The company has yet to see its Chinese customers return after nearly a year of uncertainty over continued access to its AI products.