SAN FRANCISCO, July 23 (Reuters) - U.S. President Donald

Trump's administration on Wednesday recommended implementing

export controls that would verify the location of advanced

artificial intelligence chips, a move that was applauded by U.S.

lawmakers from both parties in both houses of Congress.

The recommendation was part of a broader AI blueprint released

on Wednesday that aimed to boost exports of AI hardware and

software to U.S. allies and relax U.S. environmental rules to

speed the construction of new AI data centers.

But the plan released Wednesday also said the U.S. should

continue denying access to advanced U.S. AI chips made by

companies like Nvidia ( NVDA ) and AMD to foreign

adversaries. It added the U.S. government should "explore

leveraging new and existing location verification features on

advanced AI compute to ensure that the chips are not in

countries of concern."

The recommendation drew support from two lawmakers who

previously introduced bills that would require location

verification of chips after sale over concerns that they are

finding their way to countries such as China, where their export

is banned.

Key details - such as how the technology would be

implemented and how much cost it would add - remain to be worked

out, both in the proposed bills and the Trump administration's

recommendations.

"I was encouraged to see that the recommended export control

policy includes location verification mechanisms and aligns

closely with our bipartisan Chip Security Act. I look forward to

learning more of the technical details and next steps for

end-use verification," Representative Bill Foster, an Illinois

Democrat who helped introduce a chip-location bill in May, told

Reuters.

"Senator Cotton was pleased to see verification included in

President Trump's AI Action Plan, as it's a vital part of his

bipartisan, bicameral Chip Security Act and an important tool to

keep advanced American technology out of the hands of Communist

China," said Patrick McCann, a spokesperson for Senator Tom

Cotton, an Arkansas Republican who introduced a similar bill in

the U.S. Senate.