Sen. Tom Cotton (R-Ark.) launched a invoice Friday that may require chip exports to have location-tracking methods to stop American know-how from reaching adversaries.
The invoice, titled the Chip Safety Act, would direct the Commerce Division to require a “location verification mechanism” on synthetic intelligence chips topic to export controls.
Chip exporters would then be required to report back to the Commerce Division’s Bureau of Business and Safety (BIS) if their merchandise had been diverted from the meant vacation spot or tampered with.
“Expanding access to advanced technology can’t come at the cost of our national security,” Cotton wrote on X Friday. “My Chips Security Act will prevent American chips from falling into the hands of adversaries like Communist China.”
Earlier this week, the Trump administration confirmed it’s planning to repeal the Biden administration’s AI diffusion rule, which was introduced in January within the ultimate days of former President Biden’s time period.
The rule positioned caps on chip gross sales to most international locations around the globe, aside from 18 U.S. allies and companions, and meant to curb international competitors within the tech growth house.
In a press release Wednesday, the BIS referred to as the rule “overly complex, overly bureaucratic,” warning it could stifle American innovation and dominance. David Sacks, the White Home AI and crypto czar, later stated the rule alienated key U.S. allies and overreached on export management authority.
A number of different know-how firms from Microsoft to Nvidia urged Trump to loosen the principles in latest months.
The difficulty raises new challenges for the administration as they grapple with curbing competitors from China and making certain the success of American exporters.
The Trump administration final month rolled out new export licensing necessities for sure chips, together with Nvidia’s H20 and AMD’s MI308 fashions. Nvidia stated the principles will value the corporate $5.5 billion and Reuters reported on Friday that the chip producer is planning to launch a modified H20 AI chip within the wake of the brand new guidelines.
