On Friday 9 May 2025, U.S. Senator Tom Cotton introduced a new bill aimed at limiting China’s access to advanced semiconductor technology. The proposed “Chip Security Act” directs the Commerce Department to implement location-verification mechanisms for export-controlled AI chips. This initiative aims to prevent the diversion, smuggling, or unauthorized use of these sensitive technologies.

Senator Cotton, a Republican from Arkansas, emphasized the importance of balancing the expansion of U.S. technology access with robust national security measures: “With these enhanced security measures, we can continue to expand access to U.S. technology without compromising our national security.”

The bill mandates that AI chips and products containing them be equipped with location-tracking systems to detect any diversion or tampering attempts. Additionally, exporters would be required to report such incidents to the Bureau of Industry and Security.

The legislation follows President Donald Trump’s recent announcement to rescind and revise a Biden-era rule that restricted the export of advanced AI chips, which was aimed at maintaining U.S. leadership in AI and curbing China’s access.

In response, Democratic Representative Bill Foster from Illinois is also preparing to introduce a similar bill in the coming weeks, reflecting bipartisan concerns over the issue. The growing concern over China’s access to AI technology—especially for military advancements—has intensified, particularly following reports of illegal smuggling of Nvidia chips into China, violating export control regulations.

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