U.S. lawmakers introduce bill to address AI chip smuggling

A bipartisan group of eight U.S. lawmakers introduced a bill on Thursday that would require makers of artificial intelligence chips such as Nvidia to include technology to verify the location of their chips before exporting them.

The Chip Security Act introduced in the U.S. House of Representatives aims to address reports of U.S. export-controlled AI chips being smuggled into China. U.S. officials across presidential administrations have sought to clamp down on their export to China, but Reuters and other news organizations have documented how some of those chips have continued to flow.

"In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors," Rep. Bill Huizenga, a Michigan Republican who introduced the House bill, said in a statement.

Sen. Tom Cotton, an Arkansas Republican, introduced a similar bill in the U.S. Senate last week.

The House bill was co-led by Rep. Bill Foster, an Illinois Democrat, who was a physicist before becoming a legislator and designed several of his own chips during his scientific career. "I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands," Foster said in a statement.

The House bill comes after President Donald Trump's administration rescinded a rule enacted by predecessor President Joe Biden that would have regulated the flow of advanced AI chips around the world. The Trump administration has not yet announced a replacement rule.

But Trump this week toured the Middle East, where he announced a spate of deals to send AI chips to countries in the Middle East, despite growing opposition from some inside the U.S. government.  

In addition to Foster and Huizenga, also co-leading the House bill are House Select Committee on China Chairman John Moolenaar, a Michigan Republican, and Ranking Member Raja Krishnamoorthi, an Illinois Democrat. Reps. Ted Lieu, California Democrat; Rick Crawford, an Arkansas Republican who chairs the House Intelligence Committee; Josh Gottheimer, a New Jersey Democrat; and Darin LaHood, an Illinois Republican were co-sponsors.