The Biden administration has proposed new export rules for advanced artificial intelligence (AI) chips, focusing on restricting access to cutting-edge technology for national security purposes. While these rules target China, they could also impact several European nations, including Portugal and Switzerland, raising concerns among chip industry executives and European Union officials.

New Export Framework and Global Impact

The new framework, announced on Monday, is aimed at safeguarding America’s leadership in AI technology and preventing adversaries, particularly China, from gaining access to advanced AI-related chips. However, the rules would affect 120 countries, including several European nations such as Portugal, Israel, and Switzerland, potentially disrupting the global supply chain.

The proposed restrictions, though primarily focused on China, could have broader implications for nations involved in the development of AI data centers, including those in the Middle East and Southeast Asia. These areas have become hubs for Chinese companies to build AI models using technology that would not be available for direct importation into China. This raises significant concerns for global chip suppliers, including major companies like Nvidia and AMD, as well as tech groups like the Information Technology Industry Council.

Industry Reactions and Future Uncertainty

While the new rules aim to preserve U.S. leadership in AI, industry leaders warn that the approach could stifle innovation and fragment global supply chains. The proposed export limits also raise questions about the balance between national security and economic opportunities. In particular, companies like Microsoft, Amazon, and Google are expected to comply with the new rules, which could affect their ability to expand data center operations in non-allied countries.

The framework has a 120-day comment period, and the incoming Trump administration could ultimately decide whether to adjust or reverse the current plan. This has led to a sense of uncertainty, with some industry figures, such as Nvidia’s Ned Finkle, suggesting that the rules could harm global competitiveness without achieving the desired security outcomes.