🇺🇸🇨🇳 Washington — The U.S. Senate has approved a new bipartisan clause that could significantly reshape the global AI semiconductor market, requiring Nvidia and AMD to prioritize U.S. buyers for their most advanced AI chips before exporting to China.
The provision, included in the Senate’s version of the annual defense bill, isn’t law yet — the House version does not include it, meaning the rule’s fate will be decided during the conference negotiations.
What the Rule Means
Unlike a full export ban, the clause acts as a supply allocation rule.
When demand exceeds supply, U.S. customers — including hyperscalers, research labs, and startups — would receive first priority, while Chinese buyers could face longer wait times and higher effective prices.
If enacted, chip vendors would need to maintain:
- Auditable order books
- Documented allocation policies
- Compliance checks to flag shipments tied to Chinese-linked entities when U.S. backlogs exist
Market Impact
Both Nvidia and AMD already produce China-specific chip variants with capped interconnect speeds and performance limits.
However, this new rule would go further — controlling who gets served first, not just what chips they get.
For U.S. buyers, the rule would strengthen procurement leverage, introducing priority clauses, shipment milestones, and penalties for noncompliance — effectively pushing vendors to front-load U.S. deliveries.
What’s Next
The proposal still faces uncertainty. The House and Senate must reconcile their versions of the bill, and the clause could be weakened or removed in the process.
If it survives, experts expect more supply chain oversight, including end-user attestations and tighter controls to prevent indirect rerouting through third countries.
Vendors may respond by increasing mature-node production and reserving larger U.S. chip allotments for upcoming flagship releases.
