Federal News
US Commerce Department Withdraws AI Chip Export Rule
March 20, 2026
The US Department of Commerce has officially withdrawn a proposed export control rule that would have imposed stringent approval requirements on advanced AI chip exports from major producers such as Nvidia and AMD. This draft rule, initially developed under the Biden administration and reconsidered by the Trump administration team, aimed to implement a tiered export approval system based on chip computing power and required foreign government commitments to US AI infrastructure. The withdrawal follows an interagency review and reflects ongoing policy debates balancing national security concerns with maintaining US leadership in AI technology. This pause in regulatory changes leaves the future framework for AI chip export controls uncertain, impacting global supply chains and export compliance strategies.
- Procurement professionals should note the current absence of new export restrictions on AI chips, which maintains existing export processes and reduces immediate compliance burdens for chip manufacturers and their supply chains.
- Contractors and vendors involved in semiconductor exports can continue operations without the additional tiered approval system, but should remain alert for potential future regulatory updates as policy discussions evolve.
- This development signals a strategic shift toward emphasizing international alliances and economic investments over strict export controls, which may influence future procurement and partnership opportunities.
- Organizations engaged in global semiconductor trade should evaluate their risk management and export compliance frameworks in light of this regulatory pause and prepare for possible renewed rulemaking.
export licences would be approved. As part of the arrangement, Nvidia agreed to transfer 25% of the revenue from H200 chip sales in China to the US government.
— Donald Trump
Agencies
US Department of Commerce, Office of Management and Budget, Office of Information and Regulatory Affairs, Trump administration, Biden administration
Vendors
Nvidia, AMD, Intel
Locations
Sources
- US government withdraws draft on chip rules and why it is big relief for AMD and Nvidia · MSN · Mar 20
- US Pulls Back Proposed AI Chip Export Rule as Trump Team Rethinks Strategy | Tech News - News9live · News9live · Mar 14
- US Withdraws Draft Rule That Called for Global AI Chip Permits · Bloomberg Government News · Mar 14
- U.S. Pulls Back Proposed AI Chip Export Rule Amid Policy Uncertainty - EconoTimes · econotimes.com · Mar 14