"US Reviews Export Caps on Nvidia AI Chips by Country"

The Biden administration in the United States is reportedly discussing measures to restrict the export sales of AI semiconductors from domestic companies such as Nvidia and AMD on a country-by-country basis, Bloomberg News reported on the 14th (local time), citing sources.

[Image source=Reuters Yonhap News]

According to the report, U.S. officials are considering setting export limits on these AI semiconductors targeting specific countries from a national security perspective. Sources explained that U.S. officials are particularly focusing on Middle Eastern countries that are expanding investments in AI data centers backed by substantial funding. It is expected that this could limit these countries' AI ambitions and development capabilities.

Sources described the situation as "still in the early discussion phase and fluid," but noted that such country-specific export restrictions have "gained attention in recent weeks."

Bloomberg News mentioned that last month, the U.S. Department of Commerce announced a plan to ease licensing regulations under the "Verified End User (VEU)" program for exports of advanced semiconductors from U.S. companies to data centers in countries such as the United Arab Emirates (UAE) and Saudi Arabia. The report suggested that the current policy could be pursued in connection with this. Until now, under the semiconductor export controls to China announced last year, exports to more than 40 countries including the Middle East and Africa required separate licenses to prevent products from being diverted to China. Consequently, concerns have arisen that U.S. advanced semiconductors could enter China through new indirect routes.

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS), which is responsible for export controls, declined to comment on the Bloomberg report. U.S. semiconductor companies such as Nvidia and AMD also did not respond. The White House National Security Council (NSC) spokesperson refused to comment on the matter but pointed out that the U.S. and UAE recently issued a joint statement related to AI. The statement acknowledges the tremendous potential, challenges, risks, and the need for protective measures regarding AI.

If the Biden administration implements export limits, the response of semiconductor companies remains uncertain. When export controls to China were first announced, Nvidia chose to redesign its AI products to continue sales in the Chinese market. However, Bloomberg News pointed out that with only a few months left in the Biden administration’s term, it would be difficult to introduce a comprehensive new policy if country-specific export limits are set. The implementation could also become a test in terms of diplomatic relations.

This content was produced with the assistance of AI translation services.