Chip Security Act
Latest Action
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 42 - 0.
Official Summary
Chip Security Act This bill requires covered integrated circuit products (e.g., advanced computing chips) to incorporate certain security mechanisms. Specifically, the bill directs the Department of Commerce to require any covered integrated circuit product to have chip security mechanisms that implement location verification before the product is exported, reexported, or in-country transferred to or in a foreign country. Commerce must require any person that has received a license or other authorization under the Export Control Reform Act of 2018 to export, reexport, or in-country transfer a covered product to promptly report to Commerce's Bureau of Industry and Security if the person obtains credible information that the product has been diverted away from its intended location or has been subjected to tampering. Additionally, Commerce must conduct an assessment and report to Congress on whether additional chip security mechanisms should be adopted. If Commerce determines additional security measures are necessary, then Commerce must require any covered product to include the secondary chip security mechanisms before the product is exported, reexported, or in-country transferred to or in a foreign country. The bill authorizes Commerce to take certain enforcement actions, such as verifying the ownership and location of a covered product that has been exported, reexported, or in-country transferred to or in a foreign country. Commerce must, within two years of the bill's enactment and annually thereafter for three years, assess new chip security mechanisms and report to Congress.
GovScope Watchdog™
AI Government Intelligence™The Chip Security Act requires that covered integrated circuit products, such as advanced computing chips, include security mechanisms that verify their location before being exported, reexported, or transferred within a foreign country. The Department of Commerce is tasked with enforcing these requirements, including requiring prompt reporting of any credible information about product diversion or tampering. Commerce must also assess and report to Congress on the need for additional security measures and may impose secondary security requirements if necessary. The bill authorizes Commerce to verify ownership and location of covered products abroad and mandates ongoing assessments and reports on chip security mechanisms for several years following enactment.
This bill aims to enhance the security of advanced integrated circuit products in international trade by mandating location verification and reporting requirements, with ongoing oversight by the Department of Commerce.
- Requires covered integrated circuit products to have chip security mechanisms that verify location before export, reexport, or in-country transfer to foreign countries.
- Mandates prompt reporting to Commerce if a licensed party obtains credible information of product diversion or tampering.
- Directs Commerce to assess and report to Congress on additional chip security mechanisms and to impose secondary requirements if deemed necessary.
- Authorizes Commerce to verify ownership and location of covered products after export or transfer.
- Requires Commerce to conduct initial and annual assessments of chip security mechanisms and report findings to Congress for up to three years.
['Department of Commerce, specifically the Bureau of Industry and Security', 'Manufacturers and exporters of covered integrated circuit products', 'U.S. government agencies involved in export control and trade security', 'Foreign trade partners subject to export controls']
['Implementation challenges related to verifying product location and ownership internationally', 'Potential costs for manufacturers to integrate and maintain required security mechanisms', 'Burden on exporters to promptly report credible information of diversion or tampering', 'Enforcement complexities for Commerce in monitoring compliance abroad', 'Need for clear definitions and standards for what constitutes credible information and tampering']
The bill is currently in process in the 119th Congress and has been ordered to be reported by a unanimous vote in committee. It falls under the policy area of Foreign Trade and International Finance and builds on existing export control frameworks, specifically referencing the Export Control Reform Act of 2018. The legislation reflects ongoing congressional interest in securing advanced technology exports to prevent unauthorized use or diversion.
High concern review — 3 hidden impact flags detected
GovScope reviewed 3 policy-risk categories. Hover for a quick definition. Click detected flags for bill-specific details.
['Increased security requirements may encourage development of new chip security technologies.', 'Exporters may face increased administrative and compliance costs, potentially affecting international trade dynamics.', 'Enhanced monitoring and reporting could improve detection of unauthorized product diversion or tampering.', 'Foreign partners receiving these products may experience changes in supply chain transparency and security protocols.']
The bill places significant enforcement and reporting responsibilities on the Department of Commerce and exporters, requiring clear definitions and standards to ensure consistent implementation. Ongoing assessments and reporting to Congress provide transparency on the effectiveness of security mechanisms. Monitoring the balance between security objectives and trade facilitation will be important for oversight.
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