
The Trump administration plans to scrap Biden-era global semiconductor restrictions, calling them overly complex and harmful to U.S. innovation. Instead, it will push for direct deals with countries like the UAE and Saudi Arabia while keeping – and even tightening – curbs on China.
Key points:
- Biden’s “AI diffusion rule”, which grouped countries into tiers for chip export limits, will be replaced with a simpler approach.
- No changes to China restrictions, which Trump recently strengthened.
- New negotiations expected with nations like the UAE, which has pledged $1.4 trillion in U.S. tech investments.
- Stricter enforcement coming for countries suspected of diverting chips to China (e.g., Malaysia, Thailand).
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Chip stocks rose on the news, with Nvidia gaining 3.1%. The move could benefit firms like Oracle, which is expanding data centers in Malaysia.
Trump may announce the policy shift ahead of his Middle East trip (May 13-16), where he could discuss AI chip deals with the UAE.
Nvidia, which opposed Biden’s restrictions, welcomed the change but faces tighter limits on sales to China. The new approach could lead to a patchwork of country-specific rules, creating both opportunities and headaches for the tech industry.
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