Donald Trump’s decision to let Nvidia and AMD export AI processors to China in exchange for a cut of their sales will have repercussions far beyond the U.S.
The semiconductor supply chain is global, involving a wide array of non-U.S. companies, often based in countries that are U.S. allies. Nvidia’s chips may be designed and sold by a U.S. company, but they’re manufactured by Taiwan’s TSMC, using chipmaking tools from companies like ASML, which is based in the Netherlands, and Japan’s Tokyo Election, and using components from suppliers like South Korea’s SK Hynix.
The U.S. leaned on these global companies for years to try to limit their engagement with China; these efforts picked up after the passage of the CHIPS Act and the expansion of U.S. chip-export controls in 2022. Washington has also pressured major transshipment hubs, like Singapore and the United Arab Emirates, to more closely monitor chip shipments to ensure that controlled chips don’t make their way to China in violation of U.S. law.
Within the U.S., discussion of Trump’s Nvidia deal has focused on what it means for China’s government’s and Chinese companies’ ability to get their hands on cutting-edge U.S. technology. But several other countries and companies are likely studying the deal closely to see if they might get an opening to sell to China as well.
