Bipartisan House Lawmakers Introduce Chip Security Act to Prevent AI Chip Smuggling

A bipartisan group of U.S. lawmakers introduced the Chip Security Act to prevent the smuggling of advanced AI semiconductor chips, particularly those made by Nvidia, to China. The bill requires companies to integrate location-verification technology into their AI chips and mandates reporting any diversion or changes in location, aiming to close loopholes exploited by China to access cutting-edge technology despite existing export controls. The legislation also tasks the Commerce Department with evaluating and enforcing security measures to prevent misuse or diversion of chips that could enhance China's military capabilities and surveillance. Lawmakers emphasize the national security risk posed by China’s access to these technologies, which could threaten U.S. technological leadership and military advantage. Similar efforts include the Preventing PLA Acquisition of U.S. Technology Act introduced by Senator Jim Banks, which aims to block federal funding for U.S. entities collaborating on sensitive technologies with Chinese military-linked organizations. These legislative initiatives reflect growing concern over safeguarding American innovations in AI, semiconductors, and other critical fields from exploitation by the Chinese Communist Party.