Senator Introduces Bill for Enhanced Chip Export Security
Senator Tom Cotton (R-Ark.) put forth a bill on Friday aimed at ensuring that chip exports incorporate a location tracking system, a move intended to prevent American technology from being accessed by adversaries.
The proposed legislation, named The Chip Security Act, mandates that the Department of Commerce implement a “location verification mechanism” for artificial intelligence chips that are subject to export controls.
Under this bill, chip exporters will be required to inform the Department of Commerce’s Bureau of Industry and Security (BIS) if their products are redirected from their intended destinations or altered in any way.
“We can’t allow broader access to advanced technology to compromise our national security,” Cotton stated on Friday. “My Chip Security Act will ensure that American chips do not end up in the hands of enemies, such as Communist China.”
Earlier this week, the Trump administration indicated its intention to overturn policies set by the Biden administration regarding AI export regulations, which were put in place on the last day of Biden’s presidency.
These regulations aimed to restrict foreign competition in tech development by limiting chip sales to most countries, with exceptions for 18 US allies and partners.
In a recent statement, BIS criticized these rules as “overly complex and bureaucratic,” expressing concerns that they could stifle US innovation. David Sachs, the White House AI and Crypto Czar, also noted that the regulations left major US allies and export control agencies feeling alienated.
Many technology firms, including giants like Microsoft and Nvidia, have pushed the Trump administration to ease these regulations in recent months.
This situation presents new obstacles for the administration as it attempts to navigate competition from China while supporting American exporters.
Last month, the Trump administration introduced fresh export licensing requirements for select chips, notably NVIDIA’s H20 and AMD’s MI308 models. Nvidia claimed that these new rules could lead to a $5.5 billion loss, and reports surfaced on Friday that chipmakers are planning to adjust their H20 AI chips in response to the new regulations.
