China · U.S. · White House · NBC News Tech
Bill that would mandate AI chip location logging gains industry support
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A group of companies that specialize in tracking international shipments of sensitive technologies is backing a Capitol Hill bill that would require America’s most powerful AI chips to incorporate stronger security mechanisms aimed at preventing the chips from reaching China and other adversaries.
Key facts
- The House Foreign Affairs Committee unanimously approved the CSA in a 42-0 vote in late March, sending it to the wider House, where it remains under review
- Chip smuggling is actively eroding the export controls by putting advanced AI chips in the hands of our strategic competitors,” said Kip Levin, GeoComply’s CEO
- Jim Banks, R-Ind., and Andy Kim, D-N.J., sent a letter last week asking BIS leadership to address the issue and clamp down on Chinese subsidiaries’ ability to order advanced chips
- China’s military has embraced AI, and Chinese AI companies like DeepSeek and Tencent have developed general AI systems that lag American companies’ AI capabilities by a matter of months
Summary
The letter, signed by six companies, says the Chip Security Act (CSA) would increase American chip companies’ competitiveness and close key loopholes in the U.S. export control regime. Sent to congressional leadership Thursday morning and seen by NBC News, the dispatch instead argues that more robust security verification would assure chip customers and manufacturers that they are abiding by sensitive restrictions on chip sales. Despite U.S. export control laws banning sales of advanced AI chips to certain countries, including China, loopholes in current requirements have allowed billions of dollars’ worth of America’s best AI chips to be sold to entities in third-party countries that can then forward them to China.