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US Commerce Department Withdraws Proposed Rule on AI Chip Exports

Proposed policy aimed at regulating global access to advanced chips removed from regulatory review process.

US, Mar 14 : The United States Department of Commerce has withdrawn a proposed regulation concerning the export of advanced artificial intelligence chips, according to information published on a US government regulatory website.

The draft measure, intended to outline new conditions for global access to AI semiconductor technology, had been submitted for inter agency review in late February. However, the posting was later removed from the Office of Information and Regulatory Affairs portal without any official explanation for the decision.

A spokesperson for the Commerce Department did not immediately respond to requests for clarification regarding the withdrawal. The development comes amid ongoing efforts by the administration of Donald Trump to revise policies governing the international distribution of advanced chips.

Earlier proposals suggested introducing a simplified regulatory structure designed to strengthen US leadership in artificial intelligence technologies. One version of the plan reportedly considered requiring foreign governments to make investments in US data centres or provide security assurances before receiving approval for large scale chip exports exceeding 200,000 units.

The approach differed significantly from the framework introduced under former president Joe Biden in January 2025, which established a tiered system categorising countries based on strategic partnerships and security considerations. That policy aimed to restrict the flow of cutting edge chips to strategic rivals while maintaining technology cooperation with allied nations.

Analysts say the removal of the latest proposal may reflect differing views within the US administration on how best to maintain technological leadership while addressing national security concerns tied to the global semiconductor supply chain.

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