US Announces AI Semiconductor Import Quotas by Country... Targeting China, Excluding South Korea and Allies

Direct and Indirect Imports to China Restricted
Construction of Data Centers in Third Countries Also Likely to Be Blocked

The Biden administration in the United States announced new export controls on the 13th (local time), a week before the end of its term, that allow unrestricted sales of semiconductors necessary for artificial intelligence (AI) development to allies such as South Korea, while setting limits for other countries.

The U.S. Department of Commerce stated that it would not impose restrictions on the sale of AI semiconductors containing U.S. technology to about 20 allied and partner countries, including South Korea. This is interpreted as a strategy to block AI semiconductors from directly flowing to China, which is competing for dominance in trade and advanced technology, while preventing China from building data centers in third countries such as Southeast Asia and the Middle East to enhance AI capabilities and secure indirect import routes.

The countries to which the U.S. will not impose restrictions on AI semiconductor sales include South Korea, Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Spain, Sweden, Taiwan, and the United Kingdom. The U.S. Department of Commerce plans to grant the status of 'Universally Verified End Users (UVEU)' to companies or organizations headquartered in these countries that meet high security and trust standards.Companies and organizations with UVEU status will be allowed to establish data centers in any country and deploy hundreds of thousands of purchased AI semiconductors.

On the other hand, the Department of Commerce will maintain existing export controls for about 20 countries, including China, Russia, and North Korea, which are considered 'countries of concern.' This is to ensure that advanced U.S. semiconductors exported overseas are not used for training advanced AI systems in those countries, and additional measures have been added to prevent the inflow of certain closed AI models.

For countries that are neither allies nor countries of concern, the Department of Commerce said it has set limits on the quantity of AI semiconductors that can be imported from the U.S. Organizations headquartered in countries that meet security standards and are not 'countries of concern' can apply for the status of 'Nationally Verified End Users (NVEU)' to purchase up to approximately 320,000 advanced graphics processing units (GPUs) over the next two years.

‘Non-verified first users’ outside allied and partner countries will be allowed to purchase within a quota of 50,000 GPUs allocated per country (100,000 GPUs if agreed between governments). However, up to about 1,700 advanced GPUs (worth approximately $50 million to $60 million) can be purchased without requiring approval at the time of order and will not count toward the country-specific sales limit. This simplifies the purchase process when AI semiconductors are used for good purposes such as universities, medical institutions, and research organizations.

U.S. Secretary of Commerce Gina Raimondo stated, "This policy will help create a globally trusted technology ecosystem without stifling innovation and U.S. technological leadership, and will enable protection from national security risks related to AI." Secretary Raimondo added that a 120-day public comment period will be set before implementing this measure, allowing the incoming Trump administration, which takes office on the 20th, to make modifications.

Jake Sullivan, White House National Security Advisor, also emphasized, "The United States has a national security responsibility to preserve and expand U.S. AI leadership and ensure that American AI benefits people worldwide," adding, "The rules announced today will promote the global spread of U.S. AI while ensuring that advanced AI training infrastructure remains in the U.S. and close U.S. allies."