The Trump administration’s approach to semiconductor export regulation has been unclear since Trump took office. Now, there’s insight into their potential plans.
According to Bloomberg, U.S. regulators have drafted rules necessitating U.S. government approval for exporting AI chips globally, significantly increasing control over companies like AMD and Nvidia.
TechCrunch contacted AMD and Nvidia for their response. A U.S. Department of Commerce spokesperson stated, “The Commerce Department focuses on promoting secure exports of American technology. We’ve advanced exports through historic Middle East agreements and discussions on formalizing this approach. Contrary to reports about revisiting the AI diffusion rule, we will not. It was burdensome and overreaching.”
The draft rules require foreign companies and governments to seek U.S. Department of Commerce approval to buy these chips. The review varies by order size, Bloomberg reported. A small order might face a simple review, while a large one may involve the purchasing government’s participation.
These proposals could change before an official decision, but they suggest more government intervention than Biden’s AI Diffusion rule, which the Trump administration rescinded shortly before it took effect.
While surprising, the administration’s desire for more involvement aligns with their handling of Nvidia’s exports to China. The Trump administration has vacillated on allowing Nvidia’s advanced AI chips to China, ultimately permitting exports if the U.S. Department of Commerce approved the customers.
This oversight might harm U.S. chip companies and the country’s leadership in the global AI market. Tougher sourcing from the U.S. could drive companies to look elsewhere, especially as non-U.S. chip makers develop advanced chips.
Nvidia’s struggles illustrate this issue. The semiconductor leader hasn’t regained its Chinese customers after prolonged uncertainty over access to AI technology.