U.S. Drops ‘AI Diffusion’ Rule from Chip Export Curbs

Regulatory Shift in U.S. Chip Exports

The Biden administration has removed the controversial ‘AI diffusion’ rule from its semiconductor export control framework. Initially introduced to prevent China from acquiring AI-related technologies via secondary routes, the rule was seen as overly broad and hard to enforce.

Focus Remains on Limiting China’s Tech Access

Despite scrapping the rule, the U.S. remains committed to curbing China’s access to advanced chips. The revamped export curbs aim to tighten restrictions on specific AI and chip-making tools while simplifying enforcement and compliance for U.S. companies.