The U.S. Department of Commerce has announced new guidelines stating that the use of Huawei’s next-generation AI chip, “Ascend 920,” anywhere in the world would be considered a violation of U.S. export controls. On May 13, the Bureau of Industry and Security, under the Department of Commerce, issued a statement highlighting this guideline.
In addition, the Biden administration’s previous export control regulations related to AI semiconductor exports have been discarded. These regulations, introduced at the end of the Biden administration this January, categorized countries into three tiers—alliances, general countries, and adversaries—with corresponding controls on AI semiconductor exports. The Department of Commerce criticized this approach for weakening U.S. diplomatic relations by downgrading dozens of countries to the second tier.
Subsequently, the Trump administration is drafting a new approach allowing for individual transactions to be negotiated with countries. According to Bloomberg sources, this new approach might shift to negotiations of individual deals with different nations.
Bloomberg predicts that this new guidance from the Department of Commerce could further complicate Huawei’s efforts to develop advanced chips for AI and smartphones, as they face challenges due to U.S. sanctions. The U.S. continues to control the flow of its advanced semiconductors to China, while Huawei is working on developing its own AI chips.