Export controls imposed by the United States and its allies on advanced semiconductors and chip-making equipment are creating a technological divide between the Global North and South, according to policy analysts. These restrictions, aimed at curbing China's military capabilities, also limit access for developing nations to cutting-edge artificial intelligence and computing hardware.
As of July 2026, the US has expanded its 'entity list' to include dozens of companies from countries like Singapore, Israel, and Taiwan that might transship restricted chips to China. The Netherlands and Japan have also tightened export licensing for advanced lithography systems made by ASML and Nikon.
Critics argue that these measures, while intended to protect national security, inadvertently stifle innovation in the Global South by preventing technology transfer and raising costs for research institutions and startups in regions like Africa, Southeast Asia, and Latin America.
Proponents of the controls maintain that preventing advanced chips from reaching authoritarian regimes is essential for global security. However, the net effect is a growing 'chip wall' that reinforces economic hierarchies, as developing countries struggle to participate in the AI revolution without access to the latest hardware.
