[News] Why the U.S. Bars India from Unrestricted Access to AI Chips

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On January 13, the Biden administration issued new restrictions on the export of AI chips, aiming to block rivals like China from accessing advanced technology.

Notably, India, a strategic partner of the U.S., is excluded from the list of 18 countries that are granted unrestricted access to advanced AI chips, as pointed out by a report from Voice of America.

India’s Exclusion from the 18 Countries Granted Unrestricted Access to Advanced AI Chips

The Voice of America report, citing sources, suggests that India’s ties with Moscow and its relatively underdeveloped technology regulatory framework have contributed to its exclusion from the list of countries with unrestricted access.

As the report explains, the U.S. Department of Commerce’s policy framework divides the world into three categories. The first tier includes the U.S. and 18 countries that enjoy unrestricted access to advanced AI chips. The second tier consists of over 100 nations that face new restrictions on advanced semiconductors but may be granted exemptions in certain cases. The third tier encompasses adversarial nations such as China and Russia, which are subject to the most stringent restrictions.

India, along with Israel and Singapore, is classified in the second tier, as highlighted by the report.

Technological Collaboration Between the U.S. and India

However, Richard Rossow, senior adviser and chair on India and Emerging Asia Economies at Washington’s Center for Strategic and International Studies, emphasizes that India’s technological collaboration with the U.S. might help it avoid certain restrictions in the long term, as the report notes.

As highlighted by the report, U.S. National Security Adviser Jake Sullivan has met with Indian Prime Minister Narendra Modi in early January, reaffirming their commitment to developing a strategic technology partnership and enhancing cooperation through the U.S.-India Initiative on Critical and Emerging Technology (iCET).

The report further mentions that U.S. chipmaker Micron has been establishing a semiconductor packaging facilities in India, with a total project investment of USD 2.7 billion. This effort aims to position India as a key player in the global semiconductor supply chain.

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(Photo credit: The White House)