US announces new restrictions on AI chip exports

TDT | Manama

Email: mail@newsofbahrain.com

The United States unveiled new export rules yesterday on chips used for artificial intelligence, furthering efforts to make it tough for China and other rivals to access advanced technology in Joe Biden’s final days as president.

The restrictions build on curbs announced in 2023 on exporting certain AI chips to China, which the United States sees as a strategic competitor.

In recent years, Washington has expanded its efforts to curb exports of state-of-the-art chips to China, which can be used in AI and weapons systems, as Beijing’s tech advancements spark concern among policymakers.

“The US leads the world in AI now -- both AI development and AI chip design -- and it’s critical that we keep it that way,” Commerce Secretary Gina Raimondo told reporters.

The new rules update controls on chips, requiring authorizations for exports, re-exports and in-country transfers -- while also including a series of exceptions for countries considered friendly to the United States.

AI data centers meanwhile will need to comply with enhanced security parameters to be able to import chips.

But the latest move drew industry criticism and warnings that it would hurt US competitiveness.

Semiconductor Industry Association chief executive John Neuffer said: “We’re deeply disappointed that a policy shift of this magnitude and impact is being rushed out the door days before a presidential transition and without any meaningful input from industry.”