Artificial Intelligence & Machine Learning
,
Next-Generation Technologies & Secure Development
Nvidia, Semiconductor Trade Group Push Back Against Reported Chip Restrictions
An eleventh-hour White House push to tighten global semiconductor trade restrictions is facing resistance from a leading U.S. developer of artificial intelligence chips critical to powering data centers driving AI innovation.
See Also: Live Webinar | AI in the Spotlight: Exploring the Future of AppSec Evolution
Nvidia criticized reports Friday that the Biden administration plans to unveil a three-tiered export restriction system, granting allies such as Canada, Australia, and Japan continued access to AI chips for data centers, while imposing stricter limits on much of the Middle East and Africa and the harshest restrictions on Russia and China. The restrictions would culminate years of regulatory efforts to block foreign adversaries from advancing their AI capabilities in a global technology race poised to define economic power and national security in the 21st century, though experts say prior measures have done little to stop China from circumventing controls.
The forthcoming regulations are a misguided attempt by the White House to control and constrain the development of AI innovations “disguised as an anti-China move,” said Ned Finkle, vice president of government affairs for Nvidia. Finkle described the three-tiered policy as “extreme” in a statement sent to Information Security Media Group, adding: “This last-minute Biden administration policy would be a legacy that will be criticized by U.S. industry and the global community.”
Under the proposal, most global markets would face U.S. chip import restrictions, according to Bloomberg, with the administration planning to issue the measures just days before Washington’s transition of power. The Department of Commerce and White House National Security Council did not immediately respond to questions about the timing or implementation of the new restrictions.
Bloomberg reported that the first-tier would allow U.S. developers and 18 additional countries, including Germany, South Korea and Taiwan, to freely purchase American-made chips. The second tier would reportedly include the vast majority of countries and limit GPU exports to a maximum of 50,000 units per nation between 2025 and 2027.
The third tier would target nearly 24 countries under existing U.S. arms embargoes in a bid to block Chinese or Russian efforts to circumvent chip restrictions by purchasing U.S. semiconductors through third-party nations, resellers, or foreign intermediaries.
The reported proposal also faced criticism from the Semiconductor Industry Association trade group, which said in a statement that a policy change “of this scope and significance should not be rushed out the door during a period of presidential transition and without meaningful input from industry.”
“Too much is at stake here to circumvent a deliberative process,” the statement read. “Our country needs to get this right so we can compete and win globally.”
The White House is set to release a separate executive order to strengthen national cybersecurity in its final days, but officials warn the timing so close to Inauguration Day could lead the next administration to discard it as outgoing policy. Some officials and private sector partners involved in drafting the order also fear the Biden administration may soften the final actions to improve its chances of being retained (see: Final Biden Cybersecurity Order Will Face Political Hurdles).