The Biden administration plans to export semiconductors for artificial intelligence (AI) only to allied countries and limit purchase amounts for other nations, Bloomberg reported on the 8th. According to the report, the Biden administration aims to restrict the sale of AI semiconductors used in data centers by country and company. The purpose is to focus AI development in allied countries and have global companies follow U.S. standards.
Bloomberg assessed that this will result in the expansion of semiconductor export controls to most of the world during a period of rapidly increasing AI semiconductor demand. The Biden administration plans to divide countries into three tiers to restrict exports.
A select group of top-tier U.S. allies will be able to purchase U.S.-made semiconductors without restrictions, as is currently the case. According to Bloomberg, this includes Asian allies such as South Korea, Japan, Taiwan, and major Western countries like the UK, France, Germany, and Canada.
Hostile countries, such as China, Russia, North Korea, Iran, Venezuela, Cuba, Belarus, Iraq, and Syria, will face significant restrictions on importing U.S. semiconductors.
For most other countries, there will be a cap on the total computing power they can import. These countries can import far more semiconductors than their national cap if they agree to security and human rights standards set by the U.S. government, sources told Bloomberg.
The goal is to create a trusted group of nations and companies worldwide that develop and use AI in a secure environment.
The Biden administration plans to use the “Validated End User” (VEU) rule when introducing the new export controls. The VEU is a type of general authorization that allows exports of certain items only to pre-approved companies by the U.S. government.
The U.S. government also used the VEU rule in 2023 when controlling exports of U.S.-made semiconductor equipment to China while allowing exceptions for the local factories of Samsung Electronics and SK Hynix.
These export controls could be announced as early as the 10th.
(Photo = Yonhap News)