U.S. Weighs AI Chip Export Licensing as NVIDIA and AMD Shares Fall Intraday
The U.S. Commerce Department had planned a global export licensing system for advanced AI chips that would subject overseas sales by companies including NVIDIA and AMD to review, tightening oversight of data centers and AI computing infrastructure. Because those companies depend heavily on international markets, the proposed rules could have delayed shipments and increased revenue uncertainty, weighing on semiconductor shares.
After news of the proposal emerged, investors worried that sales of advanced AI chips from NVIDIA and AMD might require case-by-case licenses, sending both companies' shares lower at one point during the session. However, the latest reports said the Commerce Department subsequently withdrew the draft, leaving the proposed comprehensive licensing regime on hold. Publicly available information did not specify the withdrawal date, the size of the share-price declines or the value of sales that could have been affected.
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The history behind this eventTaiwan Weighs China AI Chip Export Controls in Line With U.S. Measures
The United States continues to restrict exports of advanced AI chips and related technology to China. Taiwan's control of critical semiconductor supply chains, including TSMC, has drawn scrutiny over whether it will adopt similar export rules. The government is considering expanding controls to cover all customers in China, focusing on preventing chip resales and smuggling while safeguarding national security and industrial technology.
Taiwan's Ministry of Economic Affairs said in February 2025 that it had begun reviewing and amending the relevant regulations. The economy minister said the work would be handled as quickly as possible to align Taiwan's controls on AI chip exports to China with U.S. measures. Details of the new rules and their effective date have yet to be announced. TSMC's ADRs fell as much as 4.96% intraday following the news. The reports cited no transaction value.
U.S. Weighs Tighter AI Chip Export Curbs to China, Potential Caps on Nvidia and AMD Supplies
The U.S. government continues to use export controls to restrict China’s access to advanced AI chips, with a focus on Nvidia’s H200 and AMD’s MI325. Nvidia’s share of China’s AI GPU market has fallen to 55%, while Huawei has benefited from the shift toward domestic alternatives. The new restrictions could affect large-model training, data-center scale and the U.S.-China technology rivalry.
As of July 19, 2026, the latest proposal would reportedly allow 10 Chinese companies to buy Nvidia H200 chips but cap purchases at 75,000 units per company. AMD’s MI325 could also be covered. If implemented alongside global export-licensing controls, the two-pronged restrictions would significantly constrain Chinese technology giants’ ability to build ultra-large AI training clusters.
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