Bill that would mandate AI chip location tracking gains industry support

A group of companies that specialize in tracking international shipments of sensitive technologies is backing a Capitol Hill bill that would require America’s most powerful AI chips to incorporate stronger security mechanisms aimed at preventing the chips from reaching China and other adversaries.

> The letter, signed by six companies, says the Chip Security Act (CSA) would increase American chip companies’ competitiveness and close key loopholes in the U.S. export control regime. The move clashes with claims from semiconductor lobbying groups that the requirements would constrain America’s booming chip industry.

> Sent to congressional leadership Thursday morning and seen by NBC News, the dispatch instead argues that more robust security verification would assure chip customers and manufacturers that they are abiding by sensitive restrictions on chip sales. The companies argue that the boosted confidence will “lead to increased sales, faster export approvals, larger transactions, greater access to new markets, and more expansive chip deals.”