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What are export controls on AI chips?

Published June 1, 2026 · 4 min read

EXPORT CONTROLS ON AI CHIPSA checkpoint for the fastest chips.Ordinary chips pass freely; the most powerful are held for a license.chips arriveBIScheckpointPASSlow-performance · shipsHOLDlicense?high-performance · pulled asideThe rule isn't where a chip ships — it's how fast it is.

Definition

Export controls on AI chips are US government rules that require a license before advanced computing chips can be sold to restricted countries like China.

At a glance

  • The Bureau of Industry and Security (BIS), part of the Commerce Department, decides which chips need a license and where they can go[1].
  • What counts as restricted depends on measurable specs, not the brand name.
  • Rules shift fast and politically: Nvidia’s H20 was banned, then licensed across 2025; the H200 opened to approved Chinese buyers in December[4].
  • Restrictions follow the chip through third countries, reexports, and a buyer’s foreign offices.

How a chip gets restricted

BIS uses performance thresholds like total processing performance (TPP) and memory bandwidth, not the product label[3]. Under a rule effective January 15, 2026, chips below a TPP of 21,000 and DRAM bandwidth under 6,500 GB/s (about H200 level) get case-by-case license review for China if security conditions are met[2]. Faster chips face a presumption of denial.

Why it matters

Even if you never sell to China, these rules affect chip availability, pricing, and supply timing. Reselling or shipping through another country can still trigger US law, and penalties run to heavy fines, lost export privileges, and criminal liability. Confirm the current rule before buying or shipping AI hardware.

Bottom line

Export controls turn on how fast a chip is, not its name, so check current BIS rules before you buy, resell, or ship.

References

  1. Department of Commerce Revises License Review Policy for Semiconductors Exported to China — Bureau of Industry and Security. Bureau of Industry and Security www.bis.gov
  2. Revision to License Review Policy for Advanced Computing Commodities — US Department of Commerce. Federal Register www.federalregister.gov
  3. U.S. Export Controls and China: Advanced Semiconductors — Congressional Research Service. Congressional Research Service www.congress.gov
  4. Trump Lifted the AI Chip Ban on China, Clearing Nvidia and AMD to Resume Sales — Built In. Built In builtin.com

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