US Senator Proposes Chip Security Act: Mandating Location Tracking for AI Chip Exports

Lawmaker wants to fight chip smuggling with tracking devices

Despite stiff export controls on the legitimate sale of AI accelerators to China, stemming the flow of gray market GPUs streaming into the Middle Kingdom remains a point of concern for American lawmakers. US Senator Tom Cotton (R-Ark) on Friday revealed his bright idea for stopping chip smugglers in their tracks: What if we just built tracking devices into the chips? That way we'd know right away if they ended up somewhere they shouldn't. That's the gist of the Chip Security Act [PDF] Cotton introduced, which require the Secretary of Commerce to mandate that any exported advanced chips or products containing them be equipped with a "location verification mechanism" within six months of the bill passing - which we emphasize has not happened yet. It would also require licensed exporters to report to the Bureau of Industry and Security if they learn that chips have been diverted, misused, or tampered with, including efforts to disable or spoof the tracking tech. "We must do better at maintaining and expanding our position in the global market, while safeguarding America's technological edge. With these enhanced security measures, we can continue to expand access to US technology without compromising our national security," said Cotton in a canned statement. The bill doesn't say exactly how these tracking devices would work. It defines the "chip security mechanism" as "software-, firmware-, or hardware-enabled security mechanism or a physical security mechanism." Initially, the bill gives the Secretary of Commerce flexibility in how location tracking requirements are implemented, so long as the selected methods are feasible and appropriate at the time of enactment. "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," the bill reads. Long term, the bill would direct the Secretary of Commerce, in coordination with Defense, to explore potential chip security mechanisms within a year of passing, and periodically establish specific requirements chip designers would have to meet in the years that follow. As it currently stands, the proposed bill is worded so vaguely that strapping an Apple Air tag to a GPU's heat sink would theoretically satisfy the requirement. The challenge, of course, is implementing the location-tracking functionality in a way that can't easily be spoofed. Depending on how the reporting is done, and whether the rules apply to the chips themselves or the assembly as a whole (An HGX or OAM board for example), it's possible that existing hardware security tech could be enough to satisfy the requirement. High-end semiconductors are often equipped with unique identifiers or digital signatures. One can imagine a scenario similar to the end of the Cold War, where auditors would occasionally swing by former Soviet states to check that they're actually decommissioning the nuclear weapons they'd promised. However, in this case, auditors would go around to datacenters checking that the GPUs' cryptographic signatures match the ones on file. The Register reached out to AMD and Intel for comment regarding the proposed rules, but had not heard back at the time of writing. Nvidia declined to comment. While Cotton's bill does seek to include tracking technology in GPUs, it stops short of recommending the inclusion of backdoors or kill switches, as some have previously suggested. Such a kill switch would enable the US government not just to punish those caught circumventing export controls, but render any chips they might have smuggled useless. The proposed bill comes just days after the US Commerce Department said it would rescind a controversial Biden-era rule of AI exports intended to crack down on GPU smuggling to China and other nations of concern. ®

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

May 9 (Reuters) - A U.S. 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 said. 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. The move comes days after U.S. President Donald Trump said he would rescind and modify a Biden-era rule that curbed the export of sophisticated AI chips with the goal of protecting U.S. leadership in AI and blocking China's access. U.S. 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 U.S. lawmakers and reports of widespread smuggling of Nvidia's (NVDA.O), opens new tab chips into China in violation of export control laws have further amplified the concerns. Reporting by Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

New US bill targets AI chip smuggling with built-in tracking systems

The United States has intensified its tech crackdown on China with a new legislative push that aims to tighten control over where advanced AI chips end up. On May 9, Senator Tom Cotton (R-Arkansas) introduced the Chip Security Act, a bill designed to prevent adversaries like China from accessing American semiconductor technology through unauthorized diversions or tampering. The move adds a new front in the long-simmering U.S.-China tech war, which has seen sweeping export bans, corporate compliance overhauls, and retaliatory restrictions as both nations vie for supremacy in artificial intelligence and chipmaking.

US Senator Introduces Bill Calling for Location-Tracking on AI Chips to Limit China Access

(Reuters) -A U.S. 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 said. 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. The move comes days after U.S. President Donald Trump said he would rescind and modify a Biden-era rule that curbed the export of sophisticated AI chips with the goal of protecting U.S. leadership in AI and blocking China's access. U.S. 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 U.S. lawmakers and reports of widespread smuggling of Nvidia's chips into China in violation of export control laws have further amplified the concerns. (Reporting by Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta)

Cotton unveils legislation requiring location verification for advanced AI chip exports

Sen. Tom Cotton (R-Ark.) introduced a bill Friday that would require chip exports to have location-tracking systems to prevent American technology from reaching adversaries. The bill, titled the Chip Security Act, would direct the Commerce Department to require a "location verification mechanism" on artificial intelligence chips subject to export controls. Chip exporters would then be required to report to the Commerce Department's Bureau of Industry and Security (BIS) if their products were diverted from the intended destination 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 is planning to repeal the Biden administration's AI diffusion rule, which was announced in January in the final days of former President Biden's term. The rule placed caps on chip sales to most countries around the world, except for 18 U.S. allies and partners, and intended to curb foreign competition in the tech development space. In a statement Wednesday, the BIS called the rule "overly complex, overly bureaucratic," warning it would stifle American innovation and dominance. David Sacks, the White House AI and crypto czar, later said the rule alienated key U.S. allies and overreached on export control authority. Several other technology companies from Microsoft to Nvidia urged Trump to loosen the rules in recent months. The issue raises new challenges for the administration as they grapple with curbing competition from China and ensuring the success of American exporters. The Trump administration last month rolled out new export licensing requirements for certain chips, including Nvidia's H20 and AMD's MI308 models. Nvidia said the rules will cost the company $5.5 billion and Reuters reported on Friday that the chip manufacturer is planning to release a modified H20 AI chip in the wake of the new rules.

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 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 said. 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. The move comes days after U.S. President Donald Trump said he would rescind and modify a Biden-era rule that curbed the export of sophisticated AI chips with the goal of protecting US leadership in AI and blocking China's access. 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.