Advanced Integrated Circuit Export Controls

Summary#

This bill would add rules to the Export Control Reform Act to limit exports of the most advanced integrated circuits (chips) used for data centers. It requires a license to export, reexport, or transfer these advanced chips to countries listed in a specified export-control group. Licenses must be denied when the recipient company is primarily located in, or controlled by, a country of concern. The Commerce Department official (Under Secretary of Commerce for Industry and Security) may update the definition of "advanced integrated circuit" after 24 months with consultation. The bill creates an exception when the chips go to a country that is not a country of concern and remain owned and controlled by an approved United States person. The Under Secretary must publish rules within 90 days on how to designate approved United States persons; those rules must include an ownership limit (no more than 10 percent held by entities in a country of concern), physical and cybersecurity measures, know-your-customer standards, and annual audits or attestations. The section would expire five years after enactment.

What it means for you#

  • If you make or export high-end data-center chips: you would generally need a license to send them to covered foreign countries. Exports to entities tied to countries of concern would be denied.
  • If you are a U.S. company seeking to move or keep chips abroad: you could qualify as an "approved United States person" if you meet ownership, security, customer-check, and audit rules. That designation would allow some transfers to non-concern countries while keeping U.S. ownership and control.
  • If you are a buyer or partner based in a country of concern: the bill would block many shipments of these advanced chips to entities tied to those countries.
  • Definitions and rules may change after 24 months, and the whole section ends after five years.

Expenses#

No publicly available information.

Proponents' View#

Supporters frame the bill as preventing the most advanced data-center chips from reaching countries of concern while allowing controlled, secure transfers to vetted U.S.-owned or controlled parties. The bill gives the Commerce official authority to update the chip definition to keep pace with technology and requires security and ownership safeguards for approved transfers.

Opponents' View#

No publicly available information.