U.S. Lawmakers Propose Chip Security Act to Prevent AI Technology from Reaching Adversaries
A bipartisan group of U.S. lawmakers has introduced the Chip Security Act, a new bill aimed at preventing advanced American-made AI chips from ending up in the hands of adversarial governments like China and Russia. The legislation would require top chipmakers such as Nvidia and AMD to integrate location-tracking and other security measures into high-end AI semiconductors.
If passed, the law would mandate that these chips include technical safeguards allowing the U.S. government to detect unauthorized transfers and block shipments to restricted countries or users particularly targeting China.
The bill was introduced on Thursday by Reps. Bill Foster (D-IL) and Bill Huizenga (R-MI), alongside other members of the House Select Committee on China, in response to mounting reports that U.S.-made AI chips are being smuggled into China.
Lawmakers argue that Beijing is leveraging U.S. chip technology to strengthen its AI capabilities, support military development, and expand its surveillance apparatus—posing a direct threat to U.S. national security and global democratic stability.
“As Congress’ chip designer, AI programmer, and PhD physicist, I know we have the technical ability to keep powerful AI tools out of the wrong hands,” said Foster on X (formerly Twitter). He emphasized that the Chip Security Act is a critical step to protect U.S. innovation and prevent its misuse by authoritarian regimes.
Key Provisions of the Chip Security Act
According to a statement issued Thursday, the bill includes four main requirements for manufacturers of high-end AI chips:
- Location Verification: All advanced AI chips must be able to verify and report their location before being exported.
- Mandatory Reporting: Exporters must notify the government of any credible evidence that chips have been diverted or relocated unexpectedly.
- Enhanced Security Protocols: The U.S. Commerce Secretary would be responsible for developing additional security measures to block chip misuse or unauthorized distribution.
- Enforcement Authority: The Commerce Department would be empowered to verify compliance and ensure exported chips are not redirected to banned destinations.
Background and Broader Context
Rep. John Moolenaar (R-MI), Chair of the House China Committee and a co-sponsor of the bill said the Chinese Communist Party continues to exploit gaps in the U.S. export control system by using shell companies and smuggling routes to acquire sensitive chip technologies. These chips, he added, are being used to strengthen the People’s Liberation Army (PLA) and bolster domestic surveillance programs.
The House bill follows a controversial rollback under President Donald Trump’s current administration, which rescinded an earlier rule from President Joe Biden designed to regulate the export of advanced AI chips.
A companion bill was also introduced in the U.S. Senate on May 8, signalling strong bipartisan support for stricter export safeguards.
“Innovations in AI are reshaping our world and have the potential to drive scientific progress and improve everyday life,” said Huizenga. “To protect our edge, we need firm measures that ensure export restrictions are not being undermined.”
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