https://www.reuters.com/world/us/us-lawmakers-introduce-bill-address-ai-chip-smuggling-2025-05-15/

https://www.govtrack.us/congress/bills/119/hr3447

Resolution criteria

This market will resolve to 'Yes' if the provisions of the Chip Security Act become law before December 31, 2025. The resolution will be based on official announcements from the U.S. government or reputable news sources confirming the enactment of the legislation. The market will resolve to 'Yes' if the provisions are adopted into another bill which becomes law in 2025, such as the National Defense Authorization Act reauthorization.

Background

The Chip Security Act was introduced in the U.S. House of Representatives on May 15, 2025, by a bipartisan group of eight lawmakers. The bill mandates that manufacturers of artificial intelligence (AI) chips, such as Nvidia, incorporate technology to verify the location of their chips before exporting them. This measure aims to prevent the smuggling of export-controlled AI chips into countries like China. A similar bill was introduced in the U.S. Senate by Senator Tom Cotton on May 9, 2025. (reuters.com, reuters.com)

Considerations

The introduction of the Chip Security Act follows the Trump administration's decision to rescind a Biden-era rule that regulated the global export of advanced AI chips. The administration has not yet announced a replacement rule, and recent deals to export AI chips to Middle Eastern countries have faced internal opposition. (reuters.com)