The US is said to be considering new regulations to regulate the chips

How, and if, the Trump administration intends to regulate the export of semiconductors has not been known since Donald Trump took office last year. Now, we have an idea of ​​what the authorities are thinking.

US regulators have reportedly drafted regulations that would require US government approval to send AI chips anywhere outside the US, according to Bloombergciting sources. This would give the US more control over companies such as AMD and Nvidia.

TechCrunch reached out to AMD, Nvidia, and the US Department of Commerce for comment.

Under these regulations, companies and governments outside of the US must be licensed by the US Department of Commerce to purchase microchips. The assessment may vary depending on the size and scope of the potential acquisition, Bloomberg reported.

For example, a small order made by a company outside the US may require review while a larger order may require the company’s federal government to participate.

This may, of course, all change the final announcement or the final decision, but the decision will represent more government involvement than the law of AI Diffusion was established under the leadership of President Joe Biden. The Trump administration legally removed Biden’s executive order passed in May, less than a week before it took effect.

While this is the first indication of what the export restrictions might look like, it’s not surprising that the Trump administration is looking for more government action rather than less based on how it has supported Nvidia’s exports to China. The Trump administration has said turn over several times if the company can export high-end AI chips to the Chinese market before considering allowing exports like The US Department of Commerce was able to approve customers.

However, this oversight could hurt US chip companies and US dominance in the global AI market. When it comes to getting chips from the US, companies can turn to other sources, especially as chip companies outside the US continue to produce more chips.

In Nvidia’s case, export regulations are already hurting them. The semiconductor giant he did not see the return of his customers in China after almost a year not sure if they will continue to use AI technology or not.