On Friday, a U.S. senator put forward legislation tasking the Commerce Department with implementing location-verification requirements for export-regulated AI chips, aiming to tighten control over China's access to cutting-edge semiconductor technology.

Dubbed the "Chip Security Act," the proposed law mandates that AI chips covered by export restrictions—and any products incorporating them—be equipped with tracking systems designed to monitor for smuggling, diversion, or unauthorized usage.

“These advanced safeguards will allow us to broaden global access to American tech without endangering national security,” stated Senator Tom Cotton, a Republican from Arkansas.

The bill further stipulates that exporters must notify the Bureau of Industry and Security if their AI chips are diverted from their intended destinations or if there are signs of tampering.

This initiative comes just days after former President Donald Trump announced plans to roll back a Biden-era rule that limited exports of high-performance AI chips, aiming to shield U.S. dominance in artificial intelligence and hinder China's technological advancements.

Additionally, U.S. Representative Bill Foster, a Democrat from Illinois, is expected to introduce a parallel bill in the near future, according to Reuters.

Concerns about China leveraging AI for military purposes have kept the issue at the forefront of U.S. legislative agendas, especially amid reports of large-scale smuggling of Nvidia chips into China in defiance of export controls.