US President Donald Trump’s administration plans to rescind Biden-era AI chip curbs as part of a broader effort to revise semiconductor trade restrictions. According to sources close to Bloomberg, the repeal is not yet final. The previous restrictions have drawn strong opposition from major tech companies and foreign governments in the past.

The Trump administration says it will not enforce the so-called AI diffusion rule when it takes effect on May 15, the sources said. Chipmakers such as Nvidia (NVDA) and AMD saw their stocks rise after the announcement. Nvidia climbed as much as 3.6%, and the Philadelphia Stock Exchange Semiconductor Index — a closely watched benchmark — gained as much as 2.1%.

Trump officials are reportedly working toward a new rule that would strengthen the control of chips abroad and remove the chip restrictions. “The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation,” the Commerce Department’s Bureau of Industry and Security said in a statement released by a spokesperson. “We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance.”

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Bloomberg’s sources also say the Commerce Department will continue to strictly enforce chip export curbs while it develops a new rule. One element of the move to repeal the diffusion rule will be to impose chip controls on countries that have diverted chips to China, including Malaysia and Thailand, the sources added. There is no direct timeline for the effective date of rescinding the chip export restrictions.

US President Donald Trump’s administration plans to rescind Biden-era AI chip curbs as part of a broader effort to revise semiconductor trade restrictions. According to sources close to Bloomberg, the repeal is not yet final. The previous restrictions have drawn strong opposition from major tech companies and foreign governments in the past.

The Trump administration says it will not enforce the so-called AI diffusion rule when it takes effect on May 15, the sources said. Chipmakers such as Nvidia (NVDA) and AMD saw their stocks rise after the announcement. Nvidia climbed as much as 3.6%, and the Philadelphia Stock Exchange Semiconductor Index — a closely watched benchmark — gained as much as 2.1%.

Trump officials are reportedly working toward a new rule that would strengthen the control of chips abroad and remove the chip restrictions. “The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation,” the Commerce Department’s Bureau of Industry and Security said in a statement released by a spokesperson. “We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance.”

Also Read: Two Reasons Why The US Dollar Decay Will Further Prevail

Bloomberg’s sources also say the Commerce Department will continue to strictly enforce chip export curbs while it develops a new rule. One element of the move to repeal the diffusion rule will be to impose chip controls on countries that have diverted chips to China, including Malaysia and Thailand, the sources added. There is no direct timeline for the effective date of rescinding the chip export restrictions.