- America could soon tackle diverted and misused advanced chips with geotracking
- The proposed legislation could enforce tracking within 6 months
- Manufacturers would also have to report back to the US
New proposed legislation in Congress could see the US integrate geotracking capabilities within high-end GPUs, marking the introduction of more dynamic ways to monitor exports rather than just blanket bans.
Bipartisan lawmakers introduced the Chip Security Act to prevent high-end GPUs and AI chips from reaching countries of concern, such as China.
Currently in review, if passed, exporters would need to comply with new tracking rules while also reporting violations, such as disabled tracking, back to the US Bureau of Industry and Security (BIS).
US could introduce advanced chip tracking measures
“Not later than 180 days after the date of the enactment of this Act, the Secretary shall require any covered integrated circuit product to be outfitted with chip security mechanisms that implement location verification, using techniques that are feasible and appropriate on such date of enactment, before it is exported, reexported, or in-country transferred to or in a foreign country,” the bill reads.
Lawmakers cite national security risks and concerns over smuggling networks and shell companies exporting US chips to China illegitimately as key drivers for the tracking proposals.
“I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands. With advanced AI chips being smuggled into China and posing a national security risk, Congress must act,” Congressman Bill Foster (D-IL) added.
Location sharing should be enabled and supported before chips are exported if the bill gets passed, with the Secretary of Commerce to be made responsible for assessing second-level security mechanisms to prevent the misuse or diversion of chips covered under the proposed rules.
The bill follows the Trump administration’s removal of Biden-era chip export diffusion rules, with the White House pledging renewed export restrictions that don’t negatively impact allies.
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