Reported Draft Rules Signal New Semiconductor Export Controls Framework

News outlets reported on March 5 that the U.S. government is drafting new export control regulations for AI chips. A copy of the draft regulations is not publicly available. According to reports, the draft would cover most high end processors sold by U.S. companies and position the U.S. as a gatekeeper for the global AI industry. The licensing and approval process would depend on the amount of computing power involved in any given export. Shipments of up to 1,000 Nvidia GB300 GPUs or the equivalent would undergo fairly simple review with exemptions. Larger exports to companies building extensive computing clusters would require more pre clearance and be subject to a stricter export licensing regime with conditions attached. Conditions could include disclosure of business models or allowing U.S. government access to facilities for site visits. Large exports of more than 200,000 GB300s or the equivalent would likely require host country government involvement. Exports of this size would only be permitted for projects located in allied countries, and host countries would be required to make matching investments in American AI. The Commerce Department has denied that it will issue rules that resemble Biden administration policies. It remains unclear exactly how restrictive the reported new framework will be. Reporting indicates that the draft regulations will not significantly change the direction of administration efforts to limit China chip production and AI related technological development.