By Greg Chandler
Zeeland Record
A U.S. House committee has unanimously approved a bipartisan bill authored by U.S. Rep. Bill Huizenga that seeks to curb AI chip smuggling.
The House Foreign Affairs Committee on March 26 passed H.R. 3447, the Chip Security Act, on a vote of 42-0.
The Chip Security Act requires advanced chip manufacturers to implement technical security measures to detect and prevent smuggling to unauthorized countries and end users. The legislation was introduced in May of last year in response to ongoing reports of AI chips being smuggled into China, where they are used to power state-controlled AI projects. Despite current export controls, smuggling networks and front companies continue to move U.S.-made chips into restricted countries.
“The Chip Security Act enhances protections on AI chip exports by scaling up best security practices and encouraging innovative technologies,” said Huizenga, R-Holland Twp., who chairs the House Foreign Affairs South and Central Asia Subcommittee. “This bill directly supports the Trump Administration’s AI action plan recommendations and benefits from both administration technical assistance and industry feedback.”
Last week, the Department of Justice filed charges against three individuals for conspiring to violate U.S. national security laws by smuggling billions of dollars of advanced AI chips to China. Additionally, last fall, the Department of Justice announced it has indicted three Chinese nationals for smuggling high-tech chips to China via third-party countries like Thailand and Malaysia.
“If we're going to export advanced AI chips, we need confidence that they don’t end up in the hands of the Chinese military,” House Foreign Affairs Committee Chairman Brian Mast, R-Fla., said. “We’re continuously talking about Chinese espionage, Chinese theft, and Chinese diversion over and over again. We can’t allow this to happen.”
The Chip Security Act 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.
“America has the best semiconductors in the world and we must defend our advantage over China, which is actively working to break the law and smuggle American chips,” said Rep. John Moolenaar, R-Midland, who is chairman of the China Select Committee.
“The Chip Security Act will make it harder to steal from us, and it will protect American jobs and industry.”
Zeeland Record
A U.S. House committee has unanimously approved a bipartisan bill authored by U.S. Rep. Bill Huizenga that seeks to curb AI chip smuggling.
The House Foreign Affairs Committee on March 26 passed H.R. 3447, the Chip Security Act, on a vote of 42-0.
The Chip Security Act requires advanced chip manufacturers to implement technical security measures to detect and prevent smuggling to unauthorized countries and end users. The legislation was introduced in May of last year in response to ongoing reports of AI chips being smuggled into China, where they are used to power state-controlled AI projects. Despite current export controls, smuggling networks and front companies continue to move U.S.-made chips into restricted countries.
“The Chip Security Act enhances protections on AI chip exports by scaling up best security practices and encouraging innovative technologies,” said Huizenga, R-Holland Twp., who chairs the House Foreign Affairs South and Central Asia Subcommittee. “This bill directly supports the Trump Administration’s AI action plan recommendations and benefits from both administration technical assistance and industry feedback.”
Last week, the Department of Justice filed charges against three individuals for conspiring to violate U.S. national security laws by smuggling billions of dollars of advanced AI chips to China. Additionally, last fall, the Department of Justice announced it has indicted three Chinese nationals for smuggling high-tech chips to China via third-party countries like Thailand and Malaysia.
“If we're going to export advanced AI chips, we need confidence that they don’t end up in the hands of the Chinese military,” House Foreign Affairs Committee Chairman Brian Mast, R-Fla., said. “We’re continuously talking about Chinese espionage, Chinese theft, and Chinese diversion over and over again. We can’t allow this to happen.”
The Chip Security Act 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.
“America has the best semiconductors in the world and we must defend our advantage over China, which is actively working to break the law and smuggle American chips,” said Rep. John Moolenaar, R-Midland, who is chairman of the China Select Committee.
“The Chip Security Act will make it harder to steal from us, and it will protect American jobs and industry.”
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