Trump Administration Moves to Ease Semiconductor Export Curbs Amid Industry Pressure

The White House announced plans to roll back certain Biden-era restrictions on semiconductor exports, signaling a shift in U.S. technology policy. Sources within the administration confirmed preparations to amend National Security Memorandum 10 (NSM-10), which had imposed strict controls on advanced chip sales to foreign buyers. The move, framed as a response to industry demands, aims to boost domestic competitiveness while addressing concerns over supply chain bottlenecks.

Background of the Biden-Era Controls

NSM-10, issued in 2022, targeted exports of semiconductors, manufacturing equipment, and related technologies to countries deemed national security risks. The policy sought to curb foreign access to cutting-edge chips, particularly those critical for artificial intelligence, quantum computing, and advanced weaponry. By 2024, the restrictions had led to a 15% decline in U.S. semiconductor exports to key markets, prompting sustained criticism from manufacturers and trade groups.

Industry Reactions: A Split Response

U.S. semiconductor manufacturers, including Texas Instruments and Intel, praised the proposed changes. “Easing these constraints will allow American firms to better compete globally,” stated a senior executive at the Semiconductor Industry Association (SIA). The SIA highlighted a $52 billion investment backlog in domestic chip factories linked to NSM-10’s delays.

However, the shift drew immediate backlash from national security experts. A former Commerce Department official warned that lifting restrictions could enable adversaries to acquire technologies essential for military advancements. Bipartisan lawmakers also criticized the decision, arguing it undermines efforts to protect sensitive innovations.

Economic Implications: Balancing Growth and Security

Administration officials defended the policy shift as a recalibration to prioritize economic growth without compromising security. They emphasized that the revised rules would retain bans on exports to sanctioned entities and nations involved in military conflicts.

Analysts estimate the changes could add $3–5 billion annually to U.S. semiconductor revenue by 2026, though the long-term impact remains uncertain. Global supply chains are expected to see increased U.S. participation in high-demand markets, potentially reducing reliance on Asian manufacturers.

Political Dynamics: A Pre-Election Crossroads

The policy reversal arrives amid heightened tensions between the executive and legislative branches over technology regulation. The White House claims the adjustments align with its “pro-business” agenda, but critics argue it disregards bipartisan consensus on safeguarding critical technologies.

Legal challenges are anticipated, as NSM-10’s original framework required congressional oversight for major revisions. The Commerce Department’s authority to amend such measures without legislative approval is likely to face judicial scrutiny.

Ongoing Debate: Security vs. Innovation

The administration’s approach underscores a broader struggle to balance technological leadership with national security. While industry advocates argue that global competitiveness requires flexible export policies, security proponents stress the risks of overexposure.

As of June 2025, the revised rules have not yet been finalized, leaving businesses in a holding pattern. The outcome will influence U.S. influence in the global semiconductor market, which is projected to exceed $750 billion by 2030.

The decision reflects a pivotal moment for U.S. technology policy, with implications extending far beyond export controls. How the administration navigates this tension will shape both economic trajectories and geopolitical alliances in the coming decade.