US senator Tom Cotton has introduced legislation that, if passed, would require high-performance technology, including AI and HPC servers, to contain geo-tracking features.

Dubbed the Chip Security Act, the bill aims to “prevent advanced American chips from falling into the hands of adversaries like Communist China.”

USA chips
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Should the legislation become law, six months after it is enacted, export-controlled products would require a “location verification mechanism,” while exporters of advanced chips would be compelled to report to the Bureau of Industry and Security (BIS) if their products had been diverted away from their intended location or subject to tampering attempts.

It would also require the Departments of Commerce and Defense to study “other potential chip security mechanisms” and, over a three-year period, assess the most up-to-date security mechanisms and determine if any new mechanisms should be required. After the assessment period, the commerce department would then need to finalize the rules within two years and submit a detailed implementation roadmap to relevant congressional committees.

The legislation also stresses the need to “prioritize confidentiality” when developing the chip security mechanisms.

“We must do better at maintaining and expanding our position in the global market, while safeguarding America’s technological edge,” Republican senator Cotton said. “With these enhanced security measures, we can continue to expand access to US technology without compromising our national security.”

Many advanced chips made in the US, particularly those used in AI systems, are already subject to export controls which prohibit their sale in China. However, it is thought Chinese companies are seeking to get around these rules by importing GPUs and other sought-after components via neighboring countries.