This page may contain stale information. Last updated: 2026-06-01
Definition
Export controls are government restrictions on shipping sensitive technologies — especially advanced AI semiconductors — to designated countries or entities. The U.S. Bureau of Industry and Security (BIS) under the Commerce Department administers these rules for nvidia, amd, and foundries like tsmc.
May 2026 Headquarters Rule Clarification
On May 31, 2026, BIS clarified that license requirements for advanced AI chips apply to entities headquartered in China regardless of operating location — closing a loophole that allowed Chinese AI subsidiaries in Malaysia and elsewhere to acquire nvidia Blackwell/Rubin and AMD MI350x processors without licenses.
Scale of chips exported through the loophole ("hundreds of thousands") is expert estimate only — not confirmed by BIS.
Regulatory Timeline
- Jan 2025: Biden AI Diffusion Rule issued (global chip licensing framework)
- May 2025: Trump administration paused AI Diffusion Rule enforcement, creating gap
- May 31, 2026: BIS weekend guidance reaffirms headquarters-based licensing
- Dec 2025: Limited H200 sales to China re-authorized under separate policy
Remaining Gaps
- Already-deployed chips: guidance does NOT require decommissioning
- TSMC foundry due diligence for Chinese front companies not restored
- Transshipment enforcement continues (DOJ indictments Nov-Dec 2025)