Biden includes Israel in graphics processor export restrictions

Outgoing US President Joe Biden dealt a severe blow to Israel, by including it in the restricted category for exporting advanced graphics processors, just a week before he left the White House.

Under the new regulations, Israel will be included in a category subject to restrictions on the export of processors produced by companies such as Nvidia, Intel and AMD, although some of these companies develop their processors in Israel. Under the regulations, any Israeli company or entity would be required to submit a special application to import the processors, identify their intended use, and obtain explicit permission from the US Department of Commerce, which would significantly hinder the distribution of the products. Graphics processors in Israel, hindering the development of the country’s technology industry, and in fact any industry that uses graphics processors.

The goal of the decision is to limit the global distribution of processors and prevent them from finding their way to Russia and China, even through neutral countries or allies of the United States. Graphics processors are the basis of supercomputers that could compromise US national security, for example by breaking US military codes, or powering weapons with artificial intelligence. The United States and China are engaged in an arms race in this area. Chinese company Huawei is a leading player in the development of Chinese graphics processors that form the basis of the country’s supercomputers and server farms, and which also have military uses.

Israel is included in this category along with the United Arab Emirates, Saudi Arabia, Egypt, Eastern European countries such as Poland, Romania, Hungary, Mexico, and countries in Latin America. Ukraine, an ally of the United States, will also be included among the countries to which the supply of advanced graphics processors will be restricted, despite the war with Russia. According to Bloomberg, there will be a quota of 50,000 advanced graphics processors over a three-year period for these countries, from 2025 to 2027.

Biden decided not to include Israel among the countries excluded from the approval process, which are Australia, Belgium, Canada, Denmark, Finland, Germany, France, French Guiana, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan and the United Kingdom. .

Individual companies from these countries will be able to obtain a special exemption that removes the restrictions, even partially.

A third group of countries, which includes among others Russia, China, Belarus, Iran and Macau, will be subject to an almost complete ban on the export of advanced graphics processors. Will next President Donald Trump be able to repeal the new regulations? It goes into effect within 120 days, so a special effort against the new administration could lead to the decree being rescinded.

Published by Globes, Israel Business News – en.globes.co.il – on January 13, 2025.

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