May 9 (Reuters) - A U.S. senator introduced a bill on

Friday that would direct the Commerce Department to require

location verification mechanisms for export-controlled AI chips,

in an effort to curb China's access to advanced semiconductor

technology.

Called the "Chip Security Act," the bill calls for AI chips

under export regulations, and products containing those chips,

to be fitted with location-tracking systems to help detect

diversion, smuggling or other unauthorized use of the product.

"With these enhanced security measures, we can continue to

expand access to U.S. technology without compromising our

national security," Republican Senator Tom Cotton of Arkansas

said.

The bill also calls for companies exporting the AI chips to

report to the Bureau of Industry and Security if their products

have been diverted away from their intended location or subject

to tampering attempts.

The move comes days after U.S. President Donald Trump said

he would rescind and modify a Biden-era rule that curbed the

export of sophisticated AI chips with the goal of protecting

U.S. leadership in AI and blocking China's access.

U.S. Representative Bill Foster, a Democrat from Illinois,

also plans to introduce a bill on similar lines in the coming

weeks, Reuters reported on Monday.

Restricting China's access to AI technology that could

enhance its military capabilities has been a key focus for U.S.

lawmakers and reports of widespread smuggling of Nvidia's ( NVDA )

chips into China in violation of export control laws

have further amplified the concerns.