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US senator introduces bill calling for location-tracking on AI chips to limit China access

Daniel Nenni

Daniel Nenni

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The proposed "Chip Security Act" would require AI chips under US export controls to include location-tracking to prevent unauthorised use, particularly by China. Introduced by Senator Tom Cotton, the bill aims to enhance national security and detect smuggling. It follows ongoing efforts to limit China's access to advanced semiconductor technology amid rising concerns over diversion and misuse.

A US senator introduced a bill on Friday that would direct the Commerce Department to require location verification mechanisms for export-controlled AI chips, in an effort to curb China's access to advanced semiconductor technology.

Called the "Chip Security Act," the bill calls for AI chips under export regulations, and products containing those chips, to be fitted with location-tracking systems to help detect diversion, smuggling or other unauthorized use of the product. "With these enhanced security measures, we can continue to expand access to U.S. technology without compromising our national security," Republican Senator Tom Cotton of Arkansas.

The bill also calls for companies exporting the AI chips to report to the Bureau of Industry and Security if their products have been diverted away from their intended location or subject to tampering attempts.

US Representative Bill Foster, a Democrat from Illinois, also plans to introduce a bill on similar lines in the coming weeks, Reuters reported on Monday.

Restricting China's access to AI technology that could enhance its military capabilities has been a key focus for US lawmakers and reports of widespread smuggling of Nvidia's chips into China in violation of export control laws have further amplified the concerns.

economictimes.indiatimes.com

US senator introduces bill calling for location-tracking on AI chips to limit China access

The proposed "Chip Security Act" would require AI chips under US export controls to include location-tracking to prevent unauthorised use, particularly by China. Introduced by Senator Tom Cotton, the bill aims to enhance national security and detect smuggling. It follows ongoing efforts to limit...
economictimes.indiatimes.com economictimes.indiatimes.com
 
"The bill also calls for companies exporting the AI chips to report to the Bureau of Industry and Security if their products have been diverted away from their intended location or subject to tampering attempts"

Isnt this already export rule in US, any request for deviation fron original delivery address must be reported , and then the whole approval for export start again.

At the BIS seminars I have attended in Singapore am pretty sure that was the message and that the US Govt is coming for you once you get discovered.

EU also gave same message.

This is also instant red flag for any company exporting anything.
 
And exactly how long will it take for China to disable the location tracking so the can use as many chips as they want? Washington needs to want expert advice before waisting our tax dollars on useless bills!
 
First thing to actually scare someone into compliance is scaring them into compliance. You take someone very big, and make an example out of him.

However that works very badly, if you previously applied double standards, and was intentionally making holes in the legislation for that someone very big. It says to everyone: here someone who got very close to you, spent countless millions on campaign contributions, and followed every whim of yours was punished for that.

I think the commerce department knows exactly both what circumvention schemes are used, and the political directives to let them be.
 
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