Outgoing US President Joe Biden has dealt a severe blow to Israel, by including it in a restrictive category for the export of advanced graphics processors, just a week before he leaves the White House.
Under new regulations, Israel will be included in a category that is subject to restrictions on the export of processors produced by companies such as Nvidia, Intel, and AMD, despite the fact that some of these companies develop their processors in Israel. Under the regulations, an Israeli company or entity will be required to submit a special application to import the processors, to specify their designated use, and to receive explicit permission from the US Department of Trade, which is liable to hamper substantially the distribution of the graphics processors in Israel, and to hold back the development of the country’s technology industry, and in fact any industry that uses graphics processors.
The aim of the decision is to limit the global distribution of the processors and to prevent them from finding their way to Russia and China, even via neutral countries or US allies. Graphics processors represent the basis of supercomputers that could endanger US national security, for example by breaking US military codes, or operating weaponry by artificial intelligence. The US 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 that also have military uses.
Israel is included in the a category together with the UAE, Saudi Arabia, Egypt, and Eastern European countries such as Poland, Romania, Hungary, Mexico, and countries in Latin America. US ally Ukraine will also be included among 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 three years for these countries, from 2025 to 2027.
Biden decided not to include Israel among the countries exempt from the approval process, namely Australia, Belgium, Canada, Denmark, Finland, Germany, France, French Guiana, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan, and the UK.
Individual companies from these countries will be able to obtain a special exemption that removes even partial restrictions.
A third group of countries, that among others includes Russia, China, Belarus, Iran, and Macau, will be subject to an almost complete embargo on the export of advanced graphics processors. Will incoming President Donald Trump be able to cancel the new regulations? They come into force in 120 days’ time, so a special effort vis-à-vis the new administration could reverse the decree.
Published by Globes, Israel business news - en.globes.co.il - on January 13, 2025.
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