The Trump administration’s plans for regulating semiconductor exports have been unclear since taking office. Now, a potential framework is emerging. According to sources, U.S. regulators have drafted rules that would require U.S. government approval to ship advanced AI chips to any destination outside the country. This would grant the United States significantly more control over the global sales of companies like AMD and Nvidia.
Under these drafted rules, any company or government outside the U.S. would need approval from the Department of Commerce to purchase these chips. The review process would vary based on the size of the purchase. A small order might receive a basic review, while a large order could require the involvement of the purchaser’s home government.
A spokesperson for the Department of Commerce stated the department is committed to promoting secure exports of American technology. The spokesperson clarified that the administration is not returning to the previous AI diffusion rule, calling it burdensome and disastrous. Instead, discussions are ongoing about formalizing a new approach.
This draft proposal represents a potential increase in government involvement compared to the AI diffusion rule instituted under President Biden. The Trump administration formally rescinded that Biden-era regulation last May, shortly before it was set to take effect.
While this is the first look at potential broad restrictions, the move aligns with the administration’s handling of Nvidia’s exports to China. The administration has changed its position multiple times on allowing advanced AI chip exports to China, ultimately deciding to permit them only if the Commerce Department could approve the end customers.
However, this oversight approach risks harming U.S. chip companies and the nation’s dominance in the global AI market. If sourcing chips from the U.S. becomes more difficult, companies may increasingly turn to other international suppliers, especially as foreign chipmakers advance their technology.
For Nvidia, export regulations are already having an impact. The semiconductor giant has not seen the return of its customers in China after nearly a year of uncertainty regarding their access to AI technology.