The US is reportedly considering a complete repeal of new chip export restrictions.

Since President Donald Trump took office last year, it has remained unclear how or whether the Trump administration intends to regulate semiconductor exports. Now we know what the government is thinking.

U.S. regulators have drafted rules that would require U.S. government approval for AI chips to be shipped outside the U.S., Bloomberg reported, citing sources. This would give the US much more control over companies like AMD and Nvidia.

TechCrunch has reached out to AMD and Nvidia for comment.

A spokesperson for the U.S. Department of Commerce said: “The Department of Commerce is committed to facilitating the safe export of the U.S. technology stack. We have been successful in advancing exports through the historic Middle East deal, and there are ongoing discussions within the government about formalizing that approach. There were reports today that we would return to AI diffusion rules, but we will not do so. It was burdensome, overreach, and disastrous.”

These draft rules would require approval from the U.S. Department of Commerce for non-U.S. companies and governments to purchase these chips. The vetting process will vary depending on the size and size of the potential purchase, Bloomberg reported.

For example, a small order by a non-U.S. company may require basic review, whereas a large order may require involvement from the company’s corresponding government.

Of course, this is all subject to change before a final announcement or ruling is made, but this proposal would mean far more government involvement than the AI ​​proliferation rules enacted under President Joe Biden. The Trump administration formally rescinded Biden’s proliferation restrictions last May, less than a week before they went into effect.

This is the first hint at what broader export controls might look like, but given Nvidia’s response to potential exports to China, it’s not at all surprising that the Trump administration is seeking more government involvement, not less. The Trump administration wavered repeatedly over whether the company could send its advanced AI chips to the Chinese market before the U.S. Department of Commerce decided to allow exports if the customer could be approved.

But this surveillance approach could undermine America’s current dominance in semiconductor companies and the global AI market. If it becomes harder to source chips from the U.S., companies may increasingly turn to other sources, especially as chip companies outside the U.S. continue to develop more advanced chips.

In Nvidia’s case, export restrictions are already hurting. The semiconductor giant hasn’t returned after nearly a year of uncertainty over whether its Chinese customers would continue to have access to its AI technology.