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Market Chatter: US Lawmaker to Propose AI Chip Tracking Law to Curb China Smuggling
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Market Chatter: US Lawmaker to Propose AI Chip Tracking Law to Curb China Smuggling
May 26, 2025 12:59 AM

07:21 AM EDT, 05/05/2025 (MT Newswires) -- US Representative Bill Foster is preparing to introduce legislation requiring tracking of the location of AI chips, such as those made by Nvidia ( NVDA ) to help prevent their illegal export to China, Reuters reported Monday.

According to the report, Foster, a former particle physicist, said many chips already include built-in tracking technology that could be regulated.

The news outlet said Foster plans to introduce the bill in the coming weeks that would instruct US regulators to create rules to ensure that the chips remain in approved locations under export licenses and block unlicensed chips from powering up.

The planned legislation would also give the US Department of Commerce six months to establish these regulations, the report said.

While tracking chip locations is seen as relatively straightforward, Foster acknowledged that preventing unauthorized use of the chips would be more technically challenging but believes it is time to start exploring solutions, the report said.

Nvidia ( NVDA ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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