According to India Electronics and Semiconductor Association (IESA), US’s proposed restriction on artificial intelligence (AI) chip export to non-key allies, including India, could challenge the country’s AI hardware strategy, which is crucial for local technology development.
The US administration has proposed a new framework to limit the import of AI chips due to national security concerns. The proposal excludes 18 US allies, which have been clubbed under Group 1, but limits exports to less than 1,700 graphics processing units (GPUs) per company per year in Group 2 countries, including India. It also bars AI chip exports to countries in Group 3, including China, Russia, Iran, Iraq, Cambodia, and Belarus. In addition, US-based providers like Amazon, Microsoft, and Meta are expected to receive global authorisations but will be limited to deploying only 50 per cent of their AI computing power outside the US. These export controls are set to take effect in 120 days.
Meanwhile, India could potentially secure General National Validated End User (NVEU) authorisations due to its status as neither a re-exporter of compute integrated circuits (ICs) nor an advanced compute manufacturing hub.
