US lawmakers on Thursday introduced the Chip Security Act – a new bill that would require manufacturers to outfit high-end AI computer chips with location tracking to prevent the advanced technology from getting in the hands of rogue governments, like China and Russia.
If passed, the new legislation would require high-end chip manufacturers, like Nvidia and AMD, to implement “technical security measures” allowing the US government to detect and prevent the chips from making their way into “unauthorized countries and end users,” specifically zeroing in on China.
The bipartisan group of lawmakers, led by Congress members Rep. Bill Foster (D-IL) and Rep. Bill Huizenga (R-MI), including members from the House Select Committee on China, says the new bill is in response to ongoing reports of AI chips being smuggled into China.
The lawmakers say Beijing is using the restricted technology to power state-controlled AI projects, undermining US leadership in artificial intelligence and presenting a clear risk to national security.
“As Congress’ chip designer, AI programmer, and PhD physicist, I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands,“ Foster posted on X.
As Congress’ chip designer, AI programmer, and PhD physicist, I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands.
undefined Congressman Bill Foster (@RepBillFoster) May 15, 2025
That's why I'm leading the bipartisan effort to protect our chip exports from being smuggled into China.…
The Chip Security Act “is an important step in protecting our exports and ensuring that US technology is not used to undermine democracy and global stability,” the seven-term Congressman said.
What’s in the bill?
The Chinese Communist Party has continued to "exploit weaknesses in the US export control enforcement system by using shell companies and smuggling networks" to commandeer the sensitive technology for their own use, said House Committee Chairman John Moolenaar (R-MI), one of the co-sponsors of the bill.
Beijing has been using the AI chips "to advance the People’s Liberation Army (PLA) and extend its surveillance capabilities to further its repression,” Moolenaar said.
Thursday's press release laid out four measures chip manufacturers would be required to adhere to once the legislation is enacted:
- Location Verification - All high-end AI chips must have the ability “to identify their location before they are exported.”
- Mandatory Reporting - Any company exporting the sensitive AI technology would be beholden to report “any credible information” regarding a change in location or a discovery that the chips have been diverted from their intended destination.
- Additional Technical Requirements - The US Commerce Secretary will be tasked with assessing “second-level security mechanisms to prevent the misuse or diversion” of the AI chips.
- Enforcement - The US Commerce Secretary will be given “enforcement capabilities” to verify exported chips are not being diverted.
The House bill comes after President Donald Trump's administration rescinded a rule enacted by predecessor President Joe Biden that would have regulated the flow of advanced AI chips around the world, according to Reuters. To date, the Trump administration has not offered a replacement.
A companion Chips Security Act bill was also introduced in the US Senate on May 8th.
“The rapid evolution of advanced AI technology driven by American innovation has the potential to change everything from how we complete daily tasks to unlocking the next era of scientific breakthroughs,” said Huizenga.
“In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented," he added.
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