A US Commerce Department official has flagged upcoming regulatory action targeting chips and artificial intelligence, a signal that the already turbulent landscape of semiconductor export policy is about to get another shake-up.
A regulatory rollercoaster that won’t stop
On May 13, 2025, the Bureau of Industry and Security rescinded the Biden administration’s AI Diffusion Rule, which had been published just months earlier in January 2025. That rule was supposed to create a comprehensive framework for controlling the global flow of advanced AI chips. The Trump administration decided it wasn’t the right approach and scrapped it.
In its place came new guidance from BIS warning companies about specific risks tied to US AI chips showing up in Chinese AI models, with particular concern around Huawei Ascend chips. The message was clear: if your hardware ends up powering PRC-linked artificial intelligence, you could face criminal enforcement. Not fines. Criminal enforcement.
Then, in January 2026, BIS adjusted its licensing approach for certain AI chips. The old standard was a “presumption of denial,” which is bureaucrat-speak for “you’re probably not getting this approved.” The new standard shifted to “case-by-case review,” which also introduced additional certification requirements for exporters.
