March 25, 2026 | Endorsements

H.R. 3447, the Chip Security Act

March 25, 2026 Endorsements

H.R. 3447, the Chip Security Act

Bottom Line Up Front

H.R. 3447, the Chip Security Act, would require advanced chip manufacturers to implement technical security measures to detect and prevent smuggling to unauthorized countries and end-users. The Chinese Communist Party has repeatedly smuggled or diverted advanced U.S. chips to China to evade export controls and power AI models developed by Chinese companies. This bill would increase the effectiveness of export controls on advanced chips and make it more difficult for China and other U.S. adversaries to gain access to America’s most cutting-edge technologies.

Bill Number H.R. 3447
Bill Name Chip Security Act
Summary Requires advanced chip manufacturers to implement technical security measures to detect and prevent smuggling of advanced U.S. chips to unauthorized countries and end-users.
Chamber Bicameral
Lead Sponsor Rep. Bill Huizenga (R-MI)
Co-Lead Rep. Bill Foster (D-IL)
Original Cosponsors Reps. John Moolenaar (R-MI), Raja Krishnamoorthi (D-IL), Rick Crawford (R-AR), Ted Lieu (D-CA), Darin LaHood (R-IL), Josh Gottheimer (D-NJ)
Date Introduced 05/15/2025
Companion Bill S. 1705
Companion Lead Sponsor Sen. Tom Cotton (R-AR)

Click here to read the full legislative text and view the list of cosponsors.

Why It Matters

  • Chinese AI companies are circumventing U.S. export controls by smuggling advanced chips into China. Reuters reported that DeepSeek trained its latest model on Blackwell chips — Nvidia’s most advanced AI chip — that were smuggled into China. U.S. export controls bar the sale of Blackwells to China. Additionally, TSMC is under investigation after some of the company’s advanced chips were found inside Huawei’s high-end Ascend 910B AI processor, which would violate U.S. export controls.
  • Location verification addresses a critical enforcement gap. Recent reporting from the Financial Times indicates that in a three-month period last year, more than $1 billion in controlled NVIDIA AI chips were smuggled into China. The Department of Commerce’s Bureau of Industry and Security (BIS), which is tasked with ensuring export control compliance, cannot keep up with diversion on this scale without technological solutions that require and enable companies to report potential diversion.
  • China steals U.S. chips because Beijing is behind in the AI arms race. As Chris McGuire, a former U.S. official who worked on AI policy, explained, the best U.S. AI chips are currently about five times more powerful than Huawei’s best offerings, and by 2027 that gap will widen to seventeen times. Chinese tech founders have explicitly stated that limits on accessing computing power, not money or engineers, are the main brake on scaling and innovation.

“The United States is in a global AI arms race with the Chinese Communist Party, and advanced chips are the crown jewel of American innovation. The Chip Security Act would implement common-sense security measures to prevent these chips from being diverted to our adversaries. This bipartisan legislation is necessary to protect America’s AI leadership and defend our national security. FDD Action is proud to support the Chip Security Act.”

Connor Pfeiffer

Senior Director of Government Relations, FDD Action

Congressional Press Releases

Read statements from members of Congress who are supporting this legislation:

Issues:

China Export Controls Trade and Economics