With just a week remaining in its term, the Biden administration on January 13 announced new export controls limiting the sale of AI-related semiconductors to most countries, while exempting allies such as South Korea.

This measure supplements existing controls that block direct exports of AI semiconductors to strategic competitors like China. The new rules aim to prevent China from bypassing restrictions by utilizing third countries such as Southeast Asia or the Middle East to build data centers or acquire U.S.-made AI semiconductors.

Key Exemptions for Allies
The U.S. Department of Commerce stated that approximately 20 allied and partner countries, including South Korea, Japan, Germany, and the United Kingdom, are exempt from these restrictions. Entities based in these countries that meet high security and reliability standards will be granted “Universally Verified End-User (UVEU)” status. This designation allows them to deploy AI semiconductors globally without limitations, including setting up data centers in any country.

Countries such as Australia, Belgium, Canada, Denmark, Finland, France, Ireland, Italy, the Netherlands, New Zealand, Norway, Spain, Sweden, Taiwan, and the United Kingdom are also included.

Restrictions for Concerned Nations
The controls continue to restrict exports to 20 "countries of concern," including China, Russia, and North Korea, to prevent advanced U.S. semiconductors from being used in their AI systems. New rules also block the transfer of certain closed AI models to these nations.

Limits for Other Nations
For countries outside the allied and partner group, a cap will be imposed on the number of AI semiconductors that can be imported from the U.S. Entities in these nations can apply for "Nationally Verified End-User (NVEU)" status, allowing them to purchase up to 320,000 advanced GPUs over two years.

Non-verified end-users in non-allied countries are subject to stricter limits, capped at 50,000 GPUs per country, or 100,000 with specific intergovernmental agreements. Small-scale orders of approximately 1,700 GPUs (valued at $50–60 million) will not require pre-approval and won’t count toward the national quotas. These provisions aim to simplify procurement for universities, healthcare institutions, and research organizations using AI semiconductors for non-commercial purposes.

Policy Goals and Implementation
Commerce Secretary Gina Raimondo emphasized that the new policy aims to foster a globally trusted tech ecosystem without stifling innovation or U.S. technological leadership. She noted that these measures are crucial for safeguarding national security while promoting American AI innovation.

National Security Advisor Jake Sullivan echoed this sentiment, highlighting the dual objectives of preserving and expanding U.S. leadership in AI while ensuring its benefits extend globally.

The policy includes a 120-day public comment period, allowing the incoming Trump administration to make amendments after its January 20 inauguration.