The Trump administration is evaluating potential changes to a Biden-era rule that restricts global access to advanced AI chips, reported Reuters citing three sources.

The current rule, known as the Framework for Artificial Intelligence Diffusion, was issued by the US Department of Commerce in January 2025. It categorises countries into three tiers, affecting their ability to obtain these semiconductors.

The first tier, including 17 countries and Taiwan, has unrestricted access. A second tier of around 120 countries faces limits on chip quantity, while the third tier—comprising nations such as China, Russia, Iran, and North Korea—is banned from receiving chips.

One major revision under consideration involves scrapping the existing system to allow US-designed chips to become a more strategic tool in international trade negotiations.

However, sources cautioned that the discussions are ongoing and subject to change.

Trump officials are contemplating a shift from the tiered framework to a global licensing regime, which would involve direct government-to-government agreements.

“There are some voices pushing for elimination of the tiers,” Wilbur Ross, former Commerce secretary under Trump, told Reuters in an interview. “I think it’s still a work in progress.” He added that government-to-government agreements were one possible alternative.

In March 2025, US Commerce Secretary Howard Lutnick indicated interest in incorporating export controls into trade discussions.

Among other proposed changes is adjusting the threshold for licensing exceptions.

The current rule exempts orders under the equivalent of about 1,700 of Nvidia’s H100 chips from country caps, requiring only notification to the government.

However, the Trump administration is considering lowering this to orders under the equivalent of 500 H100 chips.

The Commerce Department declined to comment, and the White House has not yet responded to requests for comment.

Criticism of the current framework has come from industry figures such as Ken Glueck, executive vice-president at Oracle.

Glueck pointed to inconsistencies in the tier system, citing Israel and Yemen both being in Tier 2.

Both Oracle and Nvidia had previously voiced opposition to the regulation following its release in January 2025.

Some industry leaders argue the restrictions could drive countries towards alternative suppliers in China.

Seven Republican senators echoed these concerns in a letter sent to Lutnick in mid-April.

The industry has argued that the restrictions could drive countries, especially those in the second tier, to seek alternatives from China, which offers “unregulated cheap substitutes.”

In March 2025, the US government had imposed export restrictions on 80 companies, including more than 50 based in China.

The Bureau of Industry and Security (BIS) announced the inclusion of these companies in the Entity List, subjecting them to export restrictions.