Chip Security Act

National Security and Competitiveness: The bill aims to protect advanced integrated circuits and computing hardware from theft, diversion, or unauthorized use to bolster the competitiveness and national security of the United States (Section 2).

Support for Allies: Implementing these mechanisms is intended to assist allies and partners with guarding computing hardware and may allow for more streamlined and larger shipments of hardware to international partners (Section 2).

Enhanced Compliance and Detection: Chip security mechanisms are intended to improve compliance with U.S. export control laws and help detect the smuggling or exploitation of advanced hardware (Section 2).

Location Verification: The Act requires covered integrated circuit products to be outfitted with mechanisms that implement location verification (Section 4(a)(1)).

Increased Costs: The Secretary is required to analyze the potential costs associated with implementing new security methods (Section 4(b)(1)(B)(ii)).

Product Performance and Vulnerabilities: The assessment process must consider the potential impact these security methods might have on the performance of the products, as well as the potential for introducing new vulnerabilities (Section 4(b)(1)(B)(ii)).

Reporting Burdens: Licensees are required to promptly report if they obtain credible information regarding product diversion, incorrect location, or tampering (Section 4(a)(2)).

Record Keeping Requirements: The Secretary has the authority to require persons granted licenses to provide information needed to maintain records of the location and current end-user of covered products (Section 4(c)(3)).