A proposed legislation that is gaining traction in Congress this week will require high-end GPUs, and AI chips, to include location-tracking protections to ensure US-designed parts don’t end in countries against Uncle Sam’s wish. Exporters are responsible for compliance.
A group of bipartisan lawmakers introduced [PDF] in the House of Representatives on Thursday, following a similar Bill introduced in the Senate the previous week.
The proposed bill, if passed, would require that within 180 days after enactment certain advanced chips and system as defined by US Export Control Codes be equipped with a “location verification mechanism,” to detect and report diversion and misuse after export. Exporters will be responsible for reporting violations of the US Bureau of Industry and Security in the event that chips are diverted, abused, or tampered.
This means that if, for example, Nvidia accelerators sold to Singapore suddenly appeared in mainland China or the tracking technology was disabled, then the GPU giant must flag it.
Bill Foster (D) and Congressman Bill Huizenga, R-MI, are among the proponents of the measure. They argue that the measure is necessary to prevent high-end GPUs being rerouted into the Middle Kingdom via smuggling and shell companies. Foster said
“With advanced AI chips being smuggled into China and posing a national security risk, Congress must act,” in a canned press release.
“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,” Huizenga Added.
A week after Senator Tom Cotton’s (R-AR), introduced an identical bill in the Senate, the House bill is a follow up.
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The Commerce Secretary must, within six months after enactment of the bill, require covered AI chips include location verification capabilities utilizing feasible and appropriate methods. Over the next year, longer-term security requirements will be evaluated.
AMD, Nvidia and others declined to comment. Intel had not responded at the time of publication.
This bill is just days after the Trump Administration scrapped Biden’s diffusion rules. These rules were designed to stop the smuggling into China of high-end GPUs and other chips by capping the exports to the US and select allies.
Although the White House has promised new export restrictions to protect US national security, there are few details. (r)
