Delivered to your inbox every Monday, Press Clips is a rundown of the previous week’s happenings in politics and technology in America. News, opinion, podcasts, and more, to bring you up to speed for the week ahead.
Semiconductor control dominated last week’s AI policy landscape. A billion-dollar export violation investigation, a legal challenge to White House removals at the FTC, and a trade standoff with China all contributed to a sense of tightening boundaries—both institutional and geopolitical. At the same time, new legislation sought to close persistent loopholes in chip enforcement, while a series of executive orders formalized the link between energy strategy and data infrastructure.
Policy
TSMC May Face $1 Billion Fine for Chip Found in Huawei AI Processor
TSMC, the world’s most valuable semiconductor manufacturer, is facing a potential $1 billion dollar fine after Canadian research firm TechInsights found one of their chips inside Huawei’s 910B AI processor in October 2024.
Current export controls prohibit the sale of US-built chips to Huawei. However, at the time of this finding, TSMC launched an internal investigation, which concluded that Huawei may have got their hands on the chip indirectly via Chinese tech company, Sophgo.
Sophgo maintains that they have “never been engaged in any direct or indirect business relationship with Huawei”, but were subsequently blacklisted by the Biden administration in January this year.
The substantial sum levelled at TSMC is based on regulation that recommends a fine of up to twice the value of the transactions that violate export rules.
More recently, TSMC has pledged $100 billion towards US data centers after President Trump had threatened a ‘100% tax’ if such investments were not made. Given President Trump’s transactional approach, TSMC may yet avoid the proposed penalty providing they follow through on these commitments.
Legislation Introduced to Prevent the Smuggling of US-Made Chips Into China
At the same time, lawmakers are moving to strengthen safeguards aimed at preventing US chips from reaching Chinese firms through indirect channels.
US Senators Mike Rounds (R-SD) and Mark Warner (D-Va.) this week introduced the Stop Stealing Our Chips Act, which aims to prevent the smuggling of US-made chips into China.
The legislation is an amendment to the Export Control Reform Act (2018), and seeks to reinforce current efforts by creating a whistleblower incentive program at the Bureau of Industry and Security (BIS).
Under this proposal, whistleblowers who provide credible information leading to a fine may receive a portion of the fine as a reward, and would, of course, be assured confidentiality.
Rounds commented, “China continues to utilize back-door methods to smuggle these chips into their country, creating a grave national security concern… We must do a better job protecting Americans and preventing the flow of illegal chips into China.”.
Whether or not this approach would prevent the ‘nesting doll’ tactics that allowed Huawei to acquire the chip found in the 910B processor, it is nevertheless an important step in the process of building a comprehensive policy framework that reasserts control over supply chains.
Trump’s Trade War Reaches Stalemate with China
After a series of retaliatory moves, the US and China have reached a stand-off with both sides now imposing triple-digit duties on each other’s exports.
U.S. tariffs on Chinese goods have climbed to 145%, while China has responded with a 125% rate on U.S. exports—lower in absolute terms, but, according to Chinese officials, sufficient to inflict meaningful economic pressure given the imbalance in trade. Beijing has signaled that any further escalation would be merely symbolic.
China continues to posture themselves as the victims of an unnecessary escalation and “bullying” by the Trump administration, but stand firm, with their Foreign Affairs Spokesperson Mao Ning posting a Korean War era clip of Chairman Mao X, accompanied by the message: “We are Chinese. We are not afraid of provocations. We don’t back down.”.
Following industry concerns regarding inevitable price increases, and corresponding market reactions, President Trump has confirmed that exemptions to these tariffs will be made to smartphone and computer components.
This relief may only be temporary, though, as the President announced incoming tariff rates on imported semiconductors - adding that there may be room for negotiation for certain companies.
The Administration’s apparent strategy of post-hoc exemptions may seem like good news for some US tech companies in the short term, but it remains to be seen whether this is sustainable given the complex nature of trade, and given the ultimate goal of securing a stronger trading position with China.
Again, this underscores President Trump’s transactional approach and likely adds to market uncertainty as questions continue to arise as to whether there is any method to the madness.
Fuelling these questions, the President last week struck a deal with Nvidia CEO Jensen Huang at his Mar-a-Lago resort to drop export controls on the H20 chip in exchange for, you guessed it, US data centre investment. This is controversial during heightened tensions with China as, although the H20 is a ‘nerfed’ chip, it was reportedly instrumental in training DeepSeek’s much-lauded R1 model.
Trump Secures FTC with Third Republican Appointee
The Federal Trade Commission now consists of three Republican commissioners following President Trump’s removal of the agency’s two Democratic members and the Senate’s confirmation of GOP nominee Mark Meador.
The confirmation vote, which passed 50–46 along party lines, solidifies a 3–0 Republican majority on a commission historically defined by a 3–2 partisan balance.
Democrats Alvaro Bedoya and Rebecca Kelly Slaughter are challenging their dismissals in federal court, arguing that their removal violated Supreme Court precedent requiring cause for termination.
This precedent dates back to FDR’s efforts to remove William Humphrey from the FTC, and the President’s actions represent a clear departure from the long-standing norm at a moment when the agency’s role is under increased focus.
Trump Issues Further Executive Orders on Meeting Energy Demand of Data Centres
President Trump this week issued a series of executive orders aimed at addressing the increased demand for energy driven by data centres:
STRENGTHENING THE RELIABILITY AND SECURITY OF THE UNITED STATES ELECTRIC GRID, PROTECTING AMERICAN ENERGY FROM STATE OVERREACH, and Reinvigorating America’s Beautiful Clean Coal Industry and Amending Executive Order 14241 share a focus on the advancement of coal-based energy production to meet this increase in demand.
These orders highlight the impending energy needs created by the proliferation of data centres in the US and reflect the Administrations’ future intentions in offsetting their potential impact on the grid.
This coincides with growing concern among state lawmakers about the potential impact of data center expansion on residents’ utility costs and the ability of states to adhere to their climate goals.
Press Clips
Brian Merchant explores how Trump's erratic trade policies and tariffs may affect automation trends, undermine labor conditions and amplify corporate power dynamics (Blood in the Machine)
A comprehensive breakdown of the quickly evolving tariff landscape (SemiAnalysis)
Five experts from China have their say on Trump’s Trade War (Signification)
Anton Leicht examines the domestic and international risks of AI proliferation (Faster, Please) 🔒
Stanford Human Centred Artificial Intelligence (HAI) released the 2025 AI Index Report, analysing benchmarks, consumer and industry use of AI, US vs Chinese model performance, and more (Stanford HAI)
Luke Drago and L Rudolf L explore the potential of AGI in triggering ‘the intelligence curse’ (Luke Drago)
Séb Krier discusses the challenges of maintaining human agency and oversight as AI systems advance toward AGI (AI Policy Perspectives).
Flexport CEO Ryan Petersen discusess trade wars, technology and the future of globalization (Exponential View) 📽
Jack Wiseman unpacks the potential for AI to deepen inequalities (Inference Magazine)
And finally, MIT Technology Review published a piece detailing how the US military is using generative AI to improve and streamline intelligence gathering and dissemination (MIT Technology Review)
