Six companies that track international shipments of sensitive technologies are supporting a US bill that would introduce stronger security measures for the country’s most powerful artificial intelligence chips.
The Chip Security Act aims to prevent advanced US chips from being diverted to China and other adversaries through third countries.
The six companies expressed their support in a letter sent to congressional leaders on Thursday morning, according to NBC News.
They argued that the proposed legislation would close important gaps in the US export-control system and improve the competitiveness of American semiconductor companies.
Their position challenges semiconductor lobbying groups that say the requirements could restrict the rapidly growing US chip industry.
The companies said stronger verification would give chip manufacturers and customers greater confidence that they are complying with restrictions on sensitive technology sales.
They argued that this confidence could result in increased sales, faster export approvals, larger transactions, access to more markets, and broader chip agreements.
US export controls already prohibit the sale of advanced AI chips to certain countries, including China.
However, companies in third-party countries can purchase the chips before forwarding them to restricted destinations.
In March, the US Justice Department charged three people with allegedly conspiring to divert approximately $2.5 billion worth of AI servers to China.
The Chip Security Act would require exporters to improve how they track the destinations of advanced chips.
The verification system could use specially designed location-tracking hardware or software capable of running on existing equipment.
Supporters argue that the measures would allow US companies to sell advanced chips to countries such as Malaysia and Indonesia with less risk that the products would later be transferred to China.
Advanced chips provide the computing power required to develop and operate frontier AI systems.
Experts argue that restricting access to this hardware is important because geopolitical rivals could use advanced AI for military or economic purposes.
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