In a sharp escalation of export control measures, the United States has warned that using AI chips manufactured by Huawei may lead to criminal penalties. The announcement follows the Trump administration’s decision to rescind the AI Diffusion Rule introduced earlier this year under former President Biden.
The Bureau of Industry and Security (BIS), part of the US Department of Commerce, released a statement on 13th May outlining new actions to tighten global semiconductor export restrictions. These changes are aimed at safeguarding US technology from reaching adversarial states, particularly China.
The now-rescinded AI Diffusion Rule, introduced in January 2025 and scheduled for enforcement from 15th May, would have imposed broader compliance mandates on companies using foreign AI chips. BIS warned that the rule could have weakened US alliances by relegating key international partners to second-tier status.
Specific Huawei chips under scrutiny
The BIS guidance specifically targets Huawei’s Ascend series—910B, 910C, and 910D—flagging them as likely produced using US-origin technology and thus subject to strict export controls. These chips, intended for AI model training and inference, fall under regulatory provisions designed to prevent the misuse of American intellectual property.
According to the BIS, any company that procures or uses these chips may face criminal liability under US export laws. The move is seen as a direct attempt to block Huawei’s growing influence in the AI semiconductor space.
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Policy shift complicates China’s tech independence drive
Huawei recently initiated testing of its Ascend 910D chips across several Chinese firms, seeking alternatives to NVIDIA’s processors amidst tightened US sanctions. The Commerce Department’s new advisory is likely to further complicate these efforts, intensifying barriers to China’s pursuit of AI self-reliance.
The Trump administration’s stance builds on earlier restrictions first imposed in 2019, which had nearly crippled Huawei’s semiconductor ambitions. While the company rebounded with government support, the latest guidance reaffirms Washington’s commitment to isolating sensitive US technologies from rivals.
The BIS has also indicated plans to issue further public advisories detailing the risks of allowing US-origin AI hardware to assist Chinese AI development—highlighting the growing overlap between national security and emerging technologies.
