A proposed bill in the United States could considerably alter the landscape of semiconductor distribution, potentially restricting the supply of advanced chips to Europe and other international markets.

The amendment to the American defense policy bill, currently under consideration, would mandate that companies prioritize American customers for artificial intelligence (AI) chips before fulfilling orders from abroad. This measure could impact European companies that rely on American manufacturers like NVIDIA and AMD for their AI chip needs.

The bill defines “foreigner” as countries subject to embargoes or restrictions,such as China,and “foreign entities,” which could encompass European companies. This isn’t the first instance of potential export restrictions targeting Europe; a previous AI technology export license system, the “Rules on the dissemination of AI (AI Diffusion Rule)” initiated by Joe Biden, was later repealed by the Trump administration.

The bill would only limit the market shares of Nvidia and AMD, while promoting the manufacturers of Chinese fleas described as more and more competitive.

What the Bill Entails

The “guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025” aims to ensure that “small businesses, start-ups and universities” in the US have access to the latest AI GPUs from AMD, NVIDIA, and other American companies before foreign customers. This would effectively reserve most AI chips for domestic use, reflecting an “America First” approach to the semiconductor sector.

The bill stipulates that semiconductor manufacturers seeking to sell abroad must first prove they offered their products to American companies and met all domestic demand before exporting to foreign customers. This would require manufacturers to obtain authorization from the American trade department for all foreign semiconductor sales.

Specific Chips Affected

the bill targets “the most powerful AI chips,” including those with a total processing power greater than or equal to 4,800, potentially encompassing high-end GPUs like the H20 and H100 from NVIDIA, as well as the Mi308 from AMD.

NVIDIA’s Opposition

NVIDIA has voiced strong opposition to the bill. A spokesperson stated that the previous “AI Diffusion Rule” was “a counterproductive policy, based on a catastrophic science fiction, and should not be reintroduced,” arguing that their global sales do not deprive American customers and, actually, expand the market for American companies.

NVIDIA contends that the bill is based on misconceptions, including the idea that demand for advanced AI chips far exceeds supply and that American companies face significant delays in obtaining them. the company asserts it prioritizes customers with sufficient data center capacity to utilize the chips effectively.

NVIDIA also disputes the notion that manufacturing chips for China reduces availability for American buyers, emphasizing that it is only permitted to sell H20 chips to China, which are based on older technology and offer lower performance than its latest AI chips. While initially prohibited,sales of H20 chips were re-authorized during the summer,subject to Washington receiving 15% of all sales made to China.

NVIDIA maintains that its H20 deliveries in China do not affect its ability to serve customers in the United States, stating, “the sale of the H20 has no impact on our ability to provide other Nvidia products.” The company has consistently opposed measures aimed at limiting the use of American chips in China, amidst ongoing technological competition between the two countries.