WASHINGTON, Aug 10 (Reuters) - Republican Congressman John
Moolenaar, who leads the House Select Committee on China, called
on the Trump administration to make sure chip manufacturers
don't send advanced logic chips to untrusted Chinese firms.
In January 2025, the Biden administration unveiled a new
rule requiring chip manufacturers to scrutinize orders of
advanced chips from companies that could be serving as a front
for untrusted firms from China and other countries.
The rule was a response to revelations that Chinese chip
designer Sophgo had chips manufactured at TSMC that
were later discovered inside AI processors marketed by Huawei.
Huawei has been heavily sanctioned by the United States.
Soon after President Donald Trump took office, though, his
administration announced it did not plan to enforce another
Biden-era chip regulation referenced in the manufacturer rule,
fueling uncertainty about the enforcement of that measure.
In a letter dated Thursday, Moolenaar described the measure
as "a critical step in preventing from accessing
high-end U.S. chips and preserving America's technological
edge," urging the Commerce Department to enforce it.
The chip manufacturer rule was created "to close the
loophole that Huawei and Sophgo exploited," Moolenaar wrote in
the letter, sent to Jeffrey Kessler, who oversees export
controls at the Commerce Department.
If chip factories like TSMC, the world's largest, determine
that their chips are not subject to the rules, "it would
dramatically increase the risk of another SophGo-like export
control failure," Moolenaar said.
Commerce, Huawei, Sophgo and TSMC did not respond to
requests for comment.
The letter, not previously reported, is a sign of increasing
congressional concern, even among Republicans, about the Trump
administration's more lenient approach to advanced chips
reaching Chinese shores.
In June, Republican Senator Jim Banks co-wrote a letter
urging Trump's administration to tighten rules on chip contract
manufacturers to prevent them from making advanced AI chips
for overseas units of Chinese companies.
Republican Representative Bill Huizenga sharply criticized
Kessler over similar concerns last month, while a decision by
the Trump administration to allow Nvidia ( NVDA ) to sell
advanced AI chips to China has drawn fire from both parties.