The Luxembourg government has expressed surprise and concern over one of the final decisions by the Biden administration to restrict the export of US-manufactured AI chips.
The new policy categorises countries into three tiers, with only Tier 1 nations – designated as “close allies” – granted unlimited access to these advanced technologies. Notably, Luxembourg is not among the 18 countries included in Tier 1, alongside several other European nations.
Prime Minister Luc Frieden highlighted that no explanation has been provided for Luxembourg’s exclusion. He called on the European Commission to intervene, warning that the US decision risks fragmenting the EU’s internal market by creating divisions between “good trading partners” and “less good trading partners”. Frieden emphasised that such a distinction undermines the integrity of the single market.
In response, the Prime Minister has taken proactive steps to address the issue. He plans to raise the matter with European Commission President Ursula von der Leyen during a meeting next week. Additionally, Frieden has already contacted the heads of government of Poland and Portugal, both of which face similar exclusions from Tier 1.
Meanwhile, Minister for Foreign Affairs Xavier Bettel has been tasked with doing “everything in his power” to explain to the US that Luxembourg is “a trustworthy ally”, Frieden added.
The decision could prove particularly problematic for Luxembourg, as the European Commission recently selected the country to host one of the EU’s AI supercomputers.
