U.S. Legislation Proposes Geo-Tracking for Advanced Chips Amid National Security Concerns

In a significant move to protect U.S. technological advantages, Senator Tom Cotton (R-Arkansas) has introduced legislation that would require location-tracking technology in advanced semiconductors to prevent their diversion to adversarial nations, particularly China.

The Chip Security Act, introduced on May 9, aims to establish a comprehensive tracking system for high-performance chips, including those powering artificial intelligence systems and high-end gaming hardware, according to a press release from Senator Cotton’s office.

“The Chinese Communist Party will stop at nothing to steal American technology and use it against us,” Senator Cotton stated. “This bill will help prevent the diversion of advanced U.S. chips to our adversaries and protect the integrity of American products.”

The legislation comes amid growing concerns about semiconductor supply chains and national security. If passed, it would mandate that the Commerce Department require manufacturers to incorporate tracking technology in advanced chips and establish a verification system to ensure compliance.

The bill targets a wide range of semiconductor products, including high-performance AI chips, server processors, and even consumer graphics cards used for gaming, according to Tom’s Hardware. The publication notes that “high-end gaming GPUs would also be subject to the tracking requirements,” potentially affecting products from companies like Nvidia and AMD.

Reuters reports that the legislation would apply to chips meeting certain performance thresholds, including those with processing capabilities exceeding 40 teraflops, memory bandwidth above 4 terabytes per second, or more than 100 billion transistors.

The tracking technology would allow authorities to monitor the physical location of these chips throughout their lifecycle, creating what Senator Cotton describes as a “chain of custody” to prevent unauthorized diversion.

Industry experts have expressed mixed reactions. While some acknowledge the national security concerns, others worry about implementation challenges and potential impacts on the semiconductor market.

“The implications for the industry could be significant,” WebProNews noted in its coverage. “The requirement to build location tracking into chips would add complexity and cost to manufacturing processes.”

Mobile World Live reports that the legislation aims to close loopholes in existing export controls by providing “greater visibility into the movement of advanced chips” after they leave U.S. shores.

The bill emerges against the backdrop of escalating U.S.-China tensions over technology access. The Biden administration has already implemented extensive export controls on advanced semiconductor technology to China, but concerns persist about chips being diverted through third countries.

If enacted, the Chip Security Act would complement existing export restrictions and give U.S. authorities new tools to monitor compliance. However, the legislation faces a challenging path in Congress, particularly in an election year when legislative progress often slows.

For consumers, the impact remains uncertain. While the tracking requirements focus primarily on high-performance computing applications, the inclusion of gaming GPUs suggests potential ripple effects throughout the consumer electronics market.

As the semiconductor industry continues to navigate geopolitical complexities, this legislation represents another chapter in the ongoing effort to balance technological innovation with national security imperatives.