A bipartisan group of eight U.S. lawmakers has introduced the Chip Security Act, a bill that would require AI chipmakers like Nvidia to implement location verification technology in their hardware to help prevent export-controlled chips from being smuggled into China or reaching other restricted regions.
The legislation, introduced Thursday in the U.S. House of Representatives, is a response to growing evidence that U.S.-origin AI chips are still reaching China, despite existing export controls enacted under both the Biden and Trump administrations.
What the Bill Proposes:
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Mandates AI chip manufacturers to embed technology that can verify the geographic location of each chip before or during operation.
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Aims to close loopholes in enforcement of U.S. export restrictions on advanced AI chips.
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Targets unauthorized resales or re-routing of chips through third-party countries.
Sponsors and Political Support:
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Rep. Bill Huizenga (R-MI), lead sponsor, said the measure is key to protecting U.S. technological advantage and keeping chips away from “nefarious actors.”
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Rep. Bill Foster (D-IL), a physicist and chip designer turned legislator, co-led the bill, noting that the U.S. has “technical tools to prevent powerful AI technology from getting into the wrong hands.”
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Other co-leads and sponsors include:
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Rep. John Moolenaar (R-MI), Chair of the House Select Committee on China
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Rep. Raja Krishnamoorthi (D-IL), Ranking Member
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Rep. Ted Lieu (D-CA)
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Rep. Rick Crawford (R-AR), Chair of the House Intelligence Committee
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Rep. Josh Gottheimer (D-NJ)
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Rep. Darin LaHood (R-IL)
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A similar version of the bill was introduced last week in the Senate by Sen. Tom Cotton (R-AR).
Policy Context:
The proposal follows President Donald Trump’s decision to rescind a Biden-era rule designed to regulate global flows of advanced AI chips. Though the Trump administration has not issued a replacement framework, it has actively promoted AI chip deals in the Middle East, raising concerns among national security officials about oversight and end-use compliance.
The legislation is expected to rekindle debate in Washington over how best to enforce export restrictions in an era when hardware is easily resold or re-exported through global gray markets.
If passed, the Chip Security Act would represent one of the first legislative attempts to embed compliance into hardware design, rather than relying solely on export documentation and customs enforcement.