US restrictions on exports of AI chips likely to hurt India by 2027

Under the proposed rules, 18 countries -- including close US allies such as the UK, Canada, Germany, Japan, and South Korea -- will enjoy unrestricted access to chips for verified companies

The Joe Biden administration’s interim final rule to impose restrictions on the export of GPUs (graphics processing units) critical for powering AI could hinder India’s ambitious plans to scale up its AI programme by 2027.

 

“While the short-term impact might be minimal, restricted access to GPUs will have an adverse impact from 2027 as India plans to scale up its AI play. We think it is a more or less done deal,” remarked Ashok Chandak, president of the India Electronics and Semiconductors Association (IESA).

 

Echoing this sentiment, Bhaskar Chakravorti, dean of the Fletcher School of Business, noted: “In the initial