The Trump administration is preparing to dismantle the Biden administration’s restrictions on the export of advanced AI semiconductor chips, aiming to overhaul the current global regulatory framework. This policy reversal targets the tiered system established in January 2025, which categorizes countries into three groups with varying levels of access to U.S.-made AI chips like those from Nvidia.
Under the Biden-era rule, 17 allied countries plus Taiwan enjoy unlimited chip access, about 120 countries face limits, and nations such as China, Russia, Iran, and North Korea are blocked entirely. The Trump administration plans to eliminate this tier system and replace it with a global licensing regime based on bilateral government agreements, aligning with Trump’s broader trade strategy of direct country-to-country negotiations.
This shift could increase U.S. leverage in trade talks by using chip access as a bargaining chip. Additional changes under consideration include lowering the exemption threshold for licensing requirements, tightening controls on smaller orders of AI chips.
The move comes amid growing tensions over AI technology leadership, with companies like Nvidia expressing concern over export restrictions and Chinese firms such as Huawei rapidly advancing their AI chip capabilities. Nvidia’s CEO has highlighted the need for regulations that reflect the evolving global tech landscape.
While the Commerce Department and White House have declined to comment, insiders note the administration seeks a “stronger but simpler” framework, though some experts warn removing tiers may complicate enforcement.
This policy rollback marks a significant shift in U.S. semiconductor export controls, potentially reshaping global AI chip trade and impacting the competitive balance between American and Chinese technology sectors.
