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Biden Targets China, Russia with New Semiconductor Export Limits

Daniel Kim Views  

Yonhap News
Yonhap News

The Biden administration is gearing up to implement new restrictions on semiconductor exports crucial for artificial intelligence (AI). According to a Bloomberg report on Wednesday, while U.S. allies will face more lenient conditions, other nations are expected to encounter stricter limitations.

The White House plans to allow unrestricted semiconductor exports to allied countries to foster AI development while cutting off exports to adversarial nations such as China and Russia. For regulatory purposes, the administration aims to classify countries into three tiers, with the top tiers including Asian allies like South Korea, Japan, and Taiwan and Western partners like the UK, France, and Germany.

China, Russia, and North Korea will likely bear the brunt of these export restrictions, with semiconductor shipments to these countries effectively halted. For most other nations, the U.S. government intends to cap the total computing power of exportable semiconductors while granting higher import allowances to countries meeting specific security and human rights criteria.

The Verified End-User program will execute the administration’s strategy. This regulation permits exports of certain items only to U.S.-approved companies, a policy that has previously granted exceptions to Samsung and SK Hynix facilities in China.

These new export regulations could be unveiled as soon as January 10. The Biden administration has taken several steps to regulate exports from U.S. chip giants like NVIDIA and AMD to China and Russia. NVIDIA has voiced criticism, telling Bloomberg that such restrictions could fail to prevent AI technology misuse and potentially threaten economic growth and U.S. technological leadership.

The Semiconductor Industry Association, including Samsung and SK Hynix, has reservations about implementing these regulations. The group cited concerns over the lack of industry consultation, the complexity, and the broad scope of the measures. They cautioned that such laws might undermine the competitiveness of the U.S. semiconductor sector.

Daniel Kim
content@viewusglobal.com

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