Chip Security Act

S 1705, the Chip Security Act, requires U.S. companies exporting specific advanced integrated circuits (used in AI systems and high-performance computing) to install location verification technology before shipping them abroad. It directly affects manufacturers and exporters of chips classified under U.S. export control numbers like 3A090 or 4A090. The bill mandates that these chips include security mechanisms to verify their location and prevent diversion or tampering, with companies needing to report suspicious activity like unauthorized location changes. The Commerce Secretary must implement these requirements within 180 days and conduct annual assessments to update security standards. This aims to strengthen compliance with export laws and protect national security by securing chip supply chains.