Earlier this week, Congressman Bill Huizenga (R-MI) and Chairman of the House Select Committee on the Chinese Communist Party John Moolenaar (R-MI) joined six other national reprentatives to introduce the Chip Security Act.

This act would require advanced chip manufacturers to implement technical security measures to detect and prevent smuggling to unauthorized countries and end-users. This 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.

“American innovation and AI computing technology has the potential to change everything from how we complete daily tasks to unlocking the next era of scientific breakthroughs,” Huizenga said. “In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure these advanced AI chips are not being shipped to bad actors who would use them for nefarious purposes. 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,” Moolenaar said. "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."

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 the Chinese Communist Party’s recent report on DeepSeek.

Other contributors include Congressman Bill Foster (D-IL), Ranking Member of the House Select Committee on the Chinese Communist Party Raja Krishnamoorthi (D-IL), House Intelligence Committee Chairman Rick Crawford (R-AR), House Intelligence Committee Member Josh Gottheimer (D-NJ), House Intelligence Committee Member Darin LaHood (R-IL), and House Foreign Affairs Committee Member Ted Lieu (D-CA).

The Chip Security Act legislative text is available here. Companion legislation to the Chip Security Act has been introduced in the U.S. Senate by Senator Tom Cotton (R-AR).