Foster, Huizenga, Moolenaar, Krishnamoorthi Introduce Bill to Stop Smuggling of Advanced AI Chips
Washington, D.C. — Today, Reps. Bill Foster (D-IL) and Bill Huizenga (R-MI), along with House Select Committee on China Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL), introduced the Chip Security Act. This legislation would require high-end chip manufacturers to implement technical security measures to detect and prevent smuggling to unauthorized countries and end users.
The legislation responds to ongoing reports of AI chips being smuggled into China, where they are used to power state-controlled AI projects. Despite export controls, smuggling networks and front companies continue to move U.S.-made chips into restricted countries.
“As Congress’ chip designer, AI programmer, and PhD physicist, 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,” said Congressman Bill Foster. “I’m proud to lead the effort on this bipartisan legislation, which is an important step in protecting our exports and ensuring that U.S. technology is not used to undermine democracy and global stability.”
“The rapid evolution of advanced AI technology driven by American innovation has the potential to change everything from how we complete daily tasks to unlocking the next era of scientific breakthroughs,” said Congressman Bill Huizenga. “In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors. The Chips Security Act is a bipartisan solution that strengthens our ability to protect American interests as well as our technological advances.”
“For too long, the Chinese Communist Party has exploited weaknesses in our export control enforcement system—using shell companies and smuggling networks to divert sensitive U.S. technology, fuel the PLA’s military advancement, and extend its surveillance capabilities to further its repression. That puts our national security and our leadership in artificial intelligence at risk. This bipartisan bill closes those gaps with real safeguards to keep our most advanced chips out of the wrong hands. I’m proud to work with my colleagues on both sides of the aisle, and we’re committed to getting this legislation across the finish line and signed into law,” said Chairman John Moolenaar.
“This bipartisan legislation will help ensure our most advanced technologies don’t end up in the wrong hands. I’m proud to join my colleagues, including Congressman Foster—whose deep expertise and leadership on science and national security issues continue to strengthen our country—in introducing this commonsense measure,” said Ranking Member Krishnamoorthi.
The bill would require:
· Location Verification: High-end AI chips must have the ability to identify their location before they are exported.
· Mandatory Reporting: Companies exporting these products must report any credible information about the diversion of the product, including if the location has changed.
· Additional Technical Requirements: Requires the Secretary of Commerce to assess second-level security mechanisms to prevent misuse or diversion of these chips.
· Enforcement: Provides the Secretary of Commerce enforcement capabilities to verify that the exported chips have not been diverted.
This issue was highlighted in the House Select Committee on China’s recent report on DeepSeek.
This bill is cosponsored by Reps. Ted Lieu (D-CA), Josh Gottheimer (D-NJ), Rick Crawford (R-AR), and Darin LaHood (R-IL). The companion bill was introduced by Senator Tom Cotton.
A copy of the legislation is available here.