Trump AI chip policy to scrap Biden’s export controls

The reflection of the Trump AI chip policy this week has announced a shift in how advanced computing technologies flowed into global markets, as the administration is preparing to dismantle the complex organizational framework consisting of three levels.

It is scheduled for May 15, 2025, the BIDEN Management Framework for Spreading Artificial Intelligence has created a global scene of class technology with great effects on international trade, innovation and geopolitical relations.

According to the Trade Administration on Wednesday, the Trump administration views the current approach as mainly defective. A spokeswoman for the Ministry of Commerce said to Reuters.

They said: “We will replace it with a much simpler base that liberates the American innovation and guarantees the dominance of American artificial intelligence.” This shift in politics comes months after the completion of the Biden administration for the export monitoring framework during the last week of the office.

This framework is the culmination of a four -year effort to restrict China’s access to advanced chips while preserving the American leadership in artificial intelligence technology. The decision to cancel the base reflects the various Trump administration’s approach to a balance between national security concerns with commercial interests.

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Understanding a three -layer system

The base, which will soon become a hierarchical structure to reach global technology. In the first layer, 17 countries in addition to Taiwan had unlimited access to advanced artificial intelligence chips.

The second layer of about 120 countries had worked under strict digital hats that limit their imports. The third and last layer – including China, Russia, Iran and North Korea – was completely prevented from reaching these technologies.

The organized approach aims to prevent advanced technologies from reaching disturbing countries through brokers while allowing access to allies and neutral countries. However, critics argued that the complexity of the regime would create great compliance burdens and push international partners towards alternative suppliers.

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The new approach to crystallization

Instead of the gradual system, sources were martyred Reuters It indicates that the Trump administration is considering implementing a global licensing system supported by internal government agreements. The approach is likely to provide more flexibility and maintain controls on sensitive technology.

The timing of advertising seems to be strategically important. Bloomberg She mentioned that changes are developing with President Trump’s readiness for a trip to the Middle East, where countries, including the Kingdom of Saudi Arabia and the United Arab Emirates, expressed their frustration with the current restrictions on its acquisition of artificial intelligence chips.

The decision of the Ministry of Commerce can be announced after Thursday, according to a source familiar with the matter.

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Market reaction and the impact of industry

Political reflection news has already sent ripples through financial markets. The shares of NVIDIA, the dominant manufacturer of chips used to train artificial intelligence models, ended 3 % on May 7 after the announcement, although it decreased by 0.7 % in trading after working hours, according to it. Reuters.

The company has been constantly opposed to the increasing number of American restrictions. Nvidia Jensen Huang CEO argues that American companies should be able to sell in China, which, as expected, will become a $ 50 billion market for artificial intelligence chips in the next two years.

However, it is important to note that the Trump chip policy turns Amnesty International does not indicate completely abandoning export controls. The administration has already shown its willingness to take strong measures against China, specifically, by banning NVIDIA of selling the H20 chip there – a step that costs the company $ 5.5 billion in tracts Bloomberg.

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International winners and losers

Policy reflection creates a complex map of potential winners and losers in the global scene of technology. Countries like India and Malaysia, which did not face restrictions on chips before the Biden base in January will be detected by temporary comfort. In the case of Malaysia, this can benefit the Oracle Corporation in particular, which has plans to expand a huge data center that exceeds the limits set by the rules that govern the distribution of artificial intelligence devices.

Middle East countries also stand to earn. The United Arab Emirates and the Kingdom of Saudi Arabia, which has faced the controls for the export of chips since 2023, may now be able to negotiate more favorable conditions.

Trump expressed his interest in alleviating the restrictions imposed on the United Arab Emirates in particular and could announce the beginning of work in a chip agreement from the government to the government during his next visit to the region from May 13 to 16.

The aggressive pursuit of the United Arab Emirates for such an agreement, supported by its pledge to invest up to $ 1.4 trillion in American technology and infrastructure over the next decade, represents the high risk of these negotiations for countries that seek to establish themselves as self -powers.

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Uncertainty

According to Axios, the Trump administration is currently developing a new control outline, which can appear as a new rule or executive order. The transition period creates a great insecurity for companies such as NVIDIA regarding the organizational environment they will face in the coming months.

Although the new framework is formed, the administration has indicated that it will continue to impose the controls of the export of current chips. One of the potential elements in the new approach may include controls specifically on the countries that have transferred chips to China, including Malaysia and Thailand, according to a source familiar with the matter.

The stakeholders in the industry are still divided into the case. While manufacturers of chips have pressed strongly against strict export controls, some artificial intelligence companies, including Antarbur, have called for protection that protects American intellectual property and technological benefits.

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Achieving a balance between competing priorities

The Biden Administration export controls are designed to reduce access to the chips needed to develop advanced artificial intelligence, with a special focus on preventing Chinese companies from finding indirect ways to technology that is prohibited by current export controls from importing directly.

The creation of a balanced approach addresses national security concerns while promoting American commercial interests represents great challenges. The creation of agreements with a wide range of countries that yearn for the purchase of advanced artificial intelligence chips will require mobility in complex diplomatic relations and perhaps the creation of dozens of separate policy frameworks.

The Ministry of Commerce has not provided a specific time schedule when any new rules are completed or implemented, which indicates only that the discussion continues on the optimal approach forward.

The transformation of Trump’s chipping policy reflects the largest focus of management on American competitiveness and innovation while maintaining control of technologies with national security effects.

Since officials are working to formulate an alternative framework, the global artificial intelligence chips market remains in a state of flow, with profound repercussions on technological development, international relations and corporate strategies in the sophisticated intelligent smart scene.

Also: the US chipping race China: the first Cambrone profit lands

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