US plans to require government approval for chip exports

The United States government is preparing new rules that could tighten the export of artificial intelligence (AI) chips from the country, mandating government approval for shipments of AI chips abroad. According to TechCrunch on Friday, the US government has drafted rules requiring companies to obtain government permission before exporting AI chips to other countries. If implemented, the policy would give the government far greater control over semiconductor companies such as AMD and Nvidia.

A spokesperson for the US Department of Commerce said the agency is committed to ensuring that exports of American technology proceed safely. “We have succeeded in driving exports through a historic agreement with Middle Eastern countries, and there are currently internal discussions within the administration to formalise that approach,” the Department of Commerce spokesperson said.

For example, small orders from foreign companies may only require a basic review. However, large-volume purchases may require involvement of the purchaser country’s government in the approval process.

Nevertheless, the draft rules may still change before they are officially announced. If implemented, the policy would mark increased government involvement than the previous AI export controls, namely the AI Diffusion policy implemented during Joe Biden’s administration.

The Trump administration is known to have scrapped Biden’s AI Diffusion rule in May last year, less than a week before the policy was due to take effect. The move to tighten oversight of AI chip exports also aligns with the US government’s sometimes-changing stance on export licences for Nvidia’s advanced AI chips to the Chinese market. Ultimately, the US government decided that exports could proceed provided customers obtain approval from the Department of Commerce.