U.S. review of AI chip export controls… “Uncertainty will increase when the Trump administration takes office.”

There are no export restrictions for U.S. allies such as Korea.
Industry: “Korea, there is no policy impact, but supply and demand are unstable”
Expected to strengthen policy when Trump administration takes office

With the news that the U.S. Biden administration is reviewing an export control policy that limits the purchase of artificial intelligence (AI) semiconductors to countries that are not allies, industry officials predicted that this policy will be further strengthened after the inauguration of the Trump administration.

According to Bloomberg News on the 8th (local time), the Biden administration is discussing a plan to divide countries into three classes and restrict the export of AI chips used in data centers. The purpose is to ensure that AI development takes place mainly in countries that are friendly to the country.

The top tier consists of America’s allies, including Japan, South Korea, Taiwan, Germany, and the Netherlands. These countries can freely purchase American semiconductors as they do now.

In the case of hostile countries such as China, Russia, and North Korea, imports of U.S. semiconductors are prohibited.

Most remaining countries set an upper limit on the total computing power that can be imported. Bloomberg, citing sources, said that these countries can purchase more semiconductors than the upper limit if they comply with the security requirements and human rights standards requested by the U.S. government.

The ‘Verified End User’ (VEU) regulation will be used in the export restriction policy. VEU is a comprehensive licensing regulation that only allows companies that have been pre-approved by the U.S. government to export designated items.

The industry said that although there will be no impact from the policy in Korea, the supply and demand of AI semiconductors is already unstable. Kim Dong-hwan, CEO of 42Maru, said, “The reason Korean supply has not been good so far is not because of export restrictions, but because there was no volume.” He added, “The situation has changed, but it is not all good news.”

An anonymous industry official said, “Korea’s procurement uncertainty is not a trade policy issue, but is more influenced by Nvidia’s lead time and the company’s sourcing ability.” He added, “The restrictions on chip exports to America’s hostile countries were already in place, so nothing fundamental has changed. “He explained.

This export restriction policy is expected to be further strengthened ahead of the inauguration of the Trump administration. Another industry insider said, “As the Trump administration pursues a protectionist stance, it may come up with a semiconductor export policy that is stricter than the current government’s policy.”

The government’s position is that a more cautious approach is needed since the Trump administration took office. Song Sang-hoon, head of the Information and Communication Policy Department at the Ministry of Science and ICT, said, “The country-first policy is prevalent around the world,” and said, “We need to review very carefully regarding the smooth supply and demand of AI chips.”

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