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3d ago

Trump Administration to Overhaul AI Chip Export Rules, Replacing Biden-Era Restrictions

The new policy will abandon the tiered licensing system in favor of bilateral agreements, with strict controls on China remaining intact.

Semiconductor chips are seen on a circuit board of a computer on February 25, 2022.
Nvidia Hopper H100 GPU and DGX systems
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Workers at a clean room at Micron Technology headquarters in Boise, Idaho.

Overview

  • The Trump administration announced plans to rescind the Biden-era AI diffusion rule, which sorted countries into three tiers with varying export restrictions, ahead of its May 15 implementation date.
  • The revised approach will focus on bilateral agreements with individual countries, such as Saudi Arabia and the UAE, in exchange for diplomatic and investment commitments, including a $1.4 trillion pledge from the UAE.
  • Strict export controls on China remain unchanged, with U.S. companies still barred from selling advanced AI chips like Nvidia’s H20 and AMD’s Instinct MI308 to the country.
  • The decision aims to simplify export rules, address industry concerns about losing market share to Chinese competitors, and strengthen U.S. technology leadership globally.
  • Shares of major chipmakers, including Nvidia, AMD, and Broadcom, rose following the announcement, reflecting investor optimism about expanded market access.