US tightens AI chip export rules targeting Chinese firms

WEB DESK: The United States has tightened its semiconductor export restrictions on overseas subsidiaries of Chinese companies, moving to close loopholes in its control regime over advanced artificial intelligence (AI) chips amid intensifying technological competition with Beijing.

In a guidance notice issued on Sunday, the US Department of Commerce said its stringent licensing requirements for exporting advanced AI chips apply globally to all firms headquartered in, or owned by parent companies based in, China, according to Al Jazeera.

The clarification was issued by the Bureau of Industry and Security (BIS), which said it was responding to growing questions over enforcement following recent policy changes under the administration of President Donald Trump.

The BIS noted that the clarification comes after the scrapping of the “Framework for Artificial Intelligence Diffusion,” a Biden-era proposal that had sought to establish a global licensing system for advanced AI processors, including strict export caps for most countries except close US allies.

Policy reversal and industry concerns

The earlier framework had drawn strong opposition from major technology firms, including Nvidia, which warned it could disrupt global innovation and cross-border collaboration. The Trump administration later withdrew the proposal, citing regulatory complexity and potential diplomatic fallout.

However, the removal of the framework led to uncertainty over the status of existing controls. The BIS has now clarified that restrictions on Chinese-owned entities remain in force, regardless of their geographic location.

Nvidia, whose high-end Blackwell graphics processing units (GPUs) are already barred from direct export to China, said it was operating in compliance with the updated guidance. Other major semiconductor firms, including AMD, Intel and Taiwan Semiconductor Manufacturing Company (TSMC), did not immediately comment.

Continued US–China tech rivalry

The move underscores ongoing tensions between Washington and Beijing over advanced semiconductor technology, widely seen as central to future dominance in artificial intelligence and high-performance computing.

Former officials and industry experts have argued that regulatory ambiguity following the policy rollback may have allowed indirect procurement of advanced chips through overseas subsidiaries, prompting calls for clearer enforcement.

Despite the tighter stance, the US has in recent months shown selective flexibility on chip exports, including permitting limited shipments of less advanced models to China under licensing arrangements.