US to Include Chip Restrictions for China in Defense Law
This gained additional momentum following the scandal involving Jensen Huang, who stepped down as CEO of Nvidia on Thursday
US House of Representatives Committee Chairman Bryan Mast stated that restrictions on the export of advanced American chips to China will "very likely" be included in the annual defense law.
Mast reported that three bills on the export of advanced chips may be incorporated into the annual US defense law package. According to him, this gained additional momentum following the scandal involving Jensen Huang, who stepped down as CEO of Nvidia on Thursday after reports of his extramarital affair with an individual suspected of working for China.
One of the bills—the Chip Security Act—provides protection against smuggling: advanced chips will be required to include location verification mechanisms. Another document will tighten restrictions on equipment for chip production and encourage other countries to adopt similar measures. The third will grant Congress the authority to review licenses for the supply of advanced chips for artificial intelligence systems.
US President Donald Trump previously showed little enthusiasm for strengthening export restrictions and approved deals allowing Nvidia to sell more powerful chips to China. Mast stated that he maintains confidence in Commerce Secretary Howard Lutnick but declined to confirm his trust in Jeffrey Kessler, who oversees export controls at the Bureau of Industry and Security.
The committee chairman also wants to investigate the bureau's role in the Nvidia situation. Mast is negotiating with Huang's team regarding his testimony before lawmakers and expects to see the former company head within a week. He did not rule out issuing a subpoena if negotiations stall or prove insincere. Nvidia and the Bureau of Industry and Security did not respond to requests for comment.
