S. 1705 — Chip Security Act

This section states the sense of Congress that (1) U.S.-developed technology should serve as the foundation for the global artificial intelligence ecosystem to advance U.S. foreign policy and national security objectives and those of U.S. allies and partners; (2) the United States can foster goodwill, strengthen relationships, and support innovative research worldwide by providing allies and partners with advanced computing capabilities; (3) advanced integrated circuits and computing hardware exported from the United States must be protected from diversion, theft, and other unauthorized use or exploitation to bolster U.S. competitiveness and protect national security; (4) implementing chip security mechanisms will improve compliance with U.S. export control laws, assist allies and partners in guarding computing hardware, and enhance protections from bad actors seeking to access, divert, or tamper with such hardware; and (5) chip security mechanisms may help detect smuggling or exploitation of advanced integrated circuits and computing hardware, thereby allowing increased flexibility in export controls and enabling streamlined, larger shipments to more international partners.

This section establishes definitions for terms used in the Act, including (1) appropriate congressional committees (i.e., the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Foreign Affairs); (2) chip security mechanism (i.e., a software-, firmware-, or hardware-enabled security mechanism or a physical security mechanism); and (3) covered integrated circuit product (i.e., an integrated circuit classified under Export Control Classification Number 3A090 or 3A001.z, a computer or other product classified under 4A090 or 4A003.z, or an integrated circuit, computer, or product containing such items classified under a successor or substantially similar Export Control Classification Number). This section further (4) incorporates by reference the definitions of export, in-country transfer, and reexport from section 1742 of the Export Control Reform Act of 2018 (50 U.S.C. 4801); and (5) defines Secretary as the Secretary of Commerce.

This section requires the Secretary of Commerce to mandate, not later than 180 days after enactment, that covered integrated circuit products incorporate chip security mechanisms implementing location verification prior to export, reexport, or in-country transfer to a foreign country. It further requires persons holding licenses or authorizations under the Export Control Reform Act of 2018 to promptly report credible information indicating such products are in an unauthorized location, diverted to an unauthorized user, or subject to tampering (including attempts to disable or circumvent security mechanisms). This section further directs the Secretary, in coordination with the Secretary of Defense and not later than one year after enactment, to assess and identify additional secondary chip security mechanisms (e.g., anti-tampering methods, workload verification) to enhance Export Control Reform Act compliance, prevent unauthorized use or exploitation, monitor smuggling, and advance U.S. national security objectives. The Secretary must report assessment results to specified congressional committees (in unclassified form, with a possible classified annex), including any identified mechanisms and an implementation roadmap; if deemed appropriate, the Secretary must require such secondary mechanisms on covered products not later than two years after completing the assessment, prioritizing confidentiality. This section authorizes the Secretary, for enforcement, to verify ownership and location of exported covered products, maintain records of their locations and end-users, and compel licensees to provide related information. This section requires an annual assessment and report on new chip security mechanisms, beginning not later than two years after enactment.