KUALA LUMPUR (Jan 13): US-based Semiconductor Industry Association (SIA) and Nvidia Corp, two prominent voices in the global chip industry, have criticised the US government’s new export curbs on artificial intelligence (AI) chips.
The outgoing Joe Biden administration’s sweeping restrictions on advanced semiconductors and AI technology, billed as a national security measure, have drawn sharp criticism for potentially stifling innovation, harming economic growth, and eroding the US’s competitive edge in AI.
In a statement on Monday, the SIA president and CEO John Neuffer highlighted that the Biden administration’s decision to publish an interim final rule titled, “Export control framework for artificial intelligence diffusion”, would impose global restrictions and onerous licensing requirements on US exports of advanced integrated circuits (ICs).
This comes at a time when several regulations have already been implemented in recent years to control and restrict access to advanced semiconductors.
“We’re deeply disappointed that a policy shift of this magnitude and impact is being rushed out the door days before a presidential transition and without any meaningful input from industry. The new rule risks causing unintended and lasting damage to America’s economy and global competitiveness in semiconductors and AI by ceding strategic markets to our competitors.
The stakes are high, and the timing is fraught. We stand ready to work with leaders in Washington to chart a path forward that protects national security while allowing us to do what America does best — compete and win globally,” said Neuffer.
SIA members account for 99% of all US semiconductor industry sales, amounting to US$264 billion in 2023. Its charter members include Nvidia, Advanced Micro Devices Inc (AMD), Intel Corp, Broadcom Inc, Qualcomm Inc, Micron Technology Inc and Texas Instruments Inc.
Meanwhile, Nvidia is one of the most valuable companies in the world with a market capitalisation of US$3.26 trillion. The AI chip giant is specialising in accelerating computing and graphics processing unit (GPU).
Ned Finkle, the vice president of government affairs at Nvidia, pointed out that for decades, leadership in computing and software ecosystems has been “a cornerstone of American strength and influence worldwide”.
Therefore, the US federal government has wisely refrained from dictating the design, marketing and sale of mainstream computers and software — key drivers of innovation and economic growth.
“The first Trump Administration laid the foundation for America’s current strength and success in AI, fostering an environment where US industry could compete and win on merit without compromising national security.
“As a result, mainstream AI has become an integral part of every new application, driving economic growth, promoting US interests and ensuring American leadership in cutting-edge technology,” he said.
Finkle further said that today, companies, startups and universities around the world are tapping mainstream AI to advance healthcare, agriculture, manufacturing, education and countless other fields, driving economic growth and unlocking the potential of nations.
“Built on American technology, the adoption of AI around the world fuels growth and opportunity for industries at home and abroad.
“That global progress is now in jeopardy. The Biden administration now seeks to restrict access to mainstream computing applications with its unprecedented and misguided “AI Diffusion” rule, which threatens to derail innovation and economic growth worldwide,” he stressed.
Finkle said the Biden administration, in its last days in office, seeks to undermine America’s leadership with over 200 pages “regulatory morass”, “drafted in secret” and “without proper legislative review”.
According to him, this sweeping overreach would impose bureaucratic control over how America’s leading semiconductors, computers, systems and even software are designed and marketed globally.
“And by attempting to rig market outcomes and stifle competition — the lifeblood of innovation — the Biden administration’s new rule threatens to squander America’s hard-won technological advantage.
While cloaked in the guise of an “anti-China” measure, these rules would do nothing to enhance US security,” he warned.
Rather than mitigate any threat, Finkle opined that the new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the US ahead.
“Although the rule is not enforceable for 120 days, it is already undercutting US interests. As the First Trump Administration demonstrated, America wins through innovation, competition and by sharing our technologies with the world — not by retreating behind a wall of government overreach.
We look forward to a return to policies that strengthen American leadership, bolster our economy and preserve our competitive edge in AI and beyond,” he concluded.