US to Implement Bilateral Licensing Framework for AI Chips
The Trump administration is preparing substantial changes to the Biden-era Framework for AI Diffusion controlling advanced semiconductor exports. Sources close to the Reuters indicate officials will replace the current three-tier country classification with a unified government-to-government licensing system requiring bilateral approval for US chip acquisitions. The existing framework, implemented in January 2025, permits unrestricted exports to 17 allied nations plus Taiwan, imposes volume caps on roughly 120 countries and blocks shipments to China, Russia, Iran, and North Korea. Current regulations exempt orders below 1,700 NVIDIA H100 equivalent units from full licensing requirements, needing only a notification.
Former Commerce Secretary Wilbur Ross, acting as an informal adviser, verified that bilateral government agreements are under review. Officials are also considering reducing the notification threshold from 1,700 to approximately 500 H100 equivalents to address circumvention concerns. The proposal has drawn criticism from industry figures, including Oracle Executive VP Ken Glueck and a coalition of seven Republican senators who have urged Commerce Secretary Howard Lutnick to withdraw the existing framework entirely. The administration faces pressure to finalize regulations before the May 15 compliance deadline, balancing security objectives with trade considerations. An announcement is expected before the month's end.
Former Commerce Secretary Wilbur Ross, acting as an informal adviser, verified that bilateral government agreements are under review. Officials are also considering reducing the notification threshold from 1,700 to approximately 500 H100 equivalents to address circumvention concerns. The proposal has drawn criticism from industry figures, including Oracle Executive VP Ken Glueck and a coalition of seven Republican senators who have urged Commerce Secretary Howard Lutnick to withdraw the existing framework entirely. The administration faces pressure to finalize regulations before the May 15 compliance deadline, balancing security objectives with trade considerations. An announcement is expected before the month's end.