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Home Hardware Semiconductor Chips

Trump Administration To Replace Biden-Era AI Chip Rule

The new rule will reportedly be “much simpler”.

by Nurul Kamil
May 8, 2025
Trump-Air-Force-One-press-shot-1

Image: Kevin Lamarque for Reuters

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According to a spokeswoman for the US Department of Commerce, the Trump administration is planning to rescind and modify a Biden-era rule concerning the export of AI chips. The regulation, known as the Framework for Artificial Intelligence Diffusion, was geared to restrict exports of AI chips to secure advanced computing power for the US and its allies while preventing China from gaining access to the same technology.

As a quick recap, the rule features a tiered system that dictates whether a country has unlimited chip access, restricted chip access, or is completely barred from access to US chips. Last week, the Trump administration was reportedly mulling over the idea of removing the tiered system in favour of a global licensing regime with government-to-government agreements.

cpu transistor semiconductor ai
Image: TobiasD, via Pixabay

The Commerce spokeswoman described the Biden rule as “overly complex, overly bureaucratic, and would stymie American innovation”. She also explained that officials did not like the tiered system and believed the rule to be unenforceable. She went on to say that the current administration intends to replace it with a much simpler rule that will unleash American innovation and ensure the country’s AI dominance.

As of yet, there is no timetable for the new rule, as the best course of action is still being considered. Under the Biden-era rule, which was meant to take effect on 15 May, Malaysia would be grouped among the nations with limited access to US chips.

(Source: Reuters)

Filed Under AIbiden era rulechipsexportTrumptrump administrationUS
Updated 4:38 pm, Thu, 8 May 25
https://lowy.at/0xw6u
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