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. Washing

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