US President Donald Trump’s administration plans to withdraw the Biden-era AI chip curb as part of a broader effort to correct semiconductor trade restrictions. Sources close to Bloomberg said the abolition is not yet final. Previous restrictions have attracted strong opposition from major tech companies and foreign governments in the past.
The Trump administration said it would not enforce the so-called AI spread rules if it took effect on May 15, sources said. Chipmakers such as Nvidia (NVDA) and AMD saw stocks rise after the announcement. Nvidia rose to 3.6% and the Philadelphia Stock Exchange’s Semiconductor Index (a carefully viewed benchmark) won by 2.1%.
Trump officials are reportedly working towards new rules that will increase control over chips overseas and remove chip restrictions. “The Biden AI rules are overly complicated, overly bureaucratic and will stymie American innovation,” the Department of Commerce’s Department of Industry and Security said in a statement released by a spokesman. “We will unleash American innovation and replace it with much simpler rules that guarantee American AI control.”
According to a Bloomberg source, the Commerce Department will continue to implement strictly on chip export curbs while developing new rules. One element of the move to abolish the spreading rules is to impose chip control on countries that distract China, including Malaysia and Thailand, sources added. There is no direct timeline for effective dates to undo the chip export restrictions.
