According to exclusive news from Reuters, the Trump administration is plotting to abolish the AI Chip export grading system, intending to use Semiconductors as a "diplomatic Weapon" to exchange for greater benefits in trade negotiations!
According to a report by Reuters, three informed sources said that the Trump administration is working on amending a restriction imposed during the Biden era on the global access to AI Chips, including possibly cancelling the policy that divides the world into several tiers to help determine how much advanced Semiconductors a country can access.
Sources said that these plans are still under discussion and warned that they may change. However, if the plans are implemented, the removal of tiers could open the door to using USA Chips as a more powerful negotiating tool in trade negotiations.
The regulation was issued in January this year and aims to delineate the usage rights of the most advanced AI Chips while controlling the weight of certain models, so that the most advanced computing capabilities remain in the USA and its allies, away from Other relevant countries.
The USA Department of Commerce released the Framework for Artificial Intelligence Diffusion in January this year, just a week before former President Biden's term ended. Companies must comply with its restrictions starting from May 15.
Currently, the rule divides the world into three tiers. The 17 countries and regions in the first tier can access Chips without limit. About 120 other countries belong to the second tier, where the amount of AI Chips they can access is capped. Meanwhile, countries in the third tier, such as Russia, Iran, and North Korea, are blocked from accessing Chips. However, sources said that Trump administration officials are weighing the abandonment of the tiered access approach in favor of a global licensing system through intergovernmental agreements.
Wilbur Ross, who served as Secretary of Commerce during Trump's first term, said in an interview on Tuesday, "There are some voices calling for the elimination of tariff tiers."
"I think this work is still in progress," he said, noting that intergovernmental agreements are one option.
One source said that this structure is likely to align with Trump's broader Global Strategy of engaging in Trade with individual countries. This would make it easier for the USA to leverage the acquisition of American-designed chips as bargaining chips in other negotiations.
USA Secretary of Commerce Raimundo stated in a meeting in March that he hoped to incorporate export controls into Trade negotiations.
Other possible changes include lowering the threshold for license exemptions. According to current regulations, an Order is equivalent to about 1,700 chips.$NVIDIA (NVDA.US)$Orders for less than the powerful H100 chip do not count towards the national limit, and only notifying the government is required without a license. According to a source, the Trump administration is considering setting the threshold for the ban at the equivalent of fewer than 500 H100 chips.
A spokesperson for the Department of Commerce declined to comment. The White House spokesperson did not respond immediately to requests for comments.
For months, Trump administration officials have indicated they want the rules to be 'stronger but simpler'; however, at least some experts believe that eliminating the hierarchy will complicate the rules further.
$Oracle (ORCL.US)$The company's Executive Vice President, Ken Glueck, is one of the critics of the current rules, pointing out that both Israel and Yemen are classified at the second level, which he finds unreasonable.
Want to get more market insights?Futubull AI is now online!Providing precise answers, comprehensive insights, and grasping key opportunities!
Editor/Rocky
