H.R. 3447: Chip Security Act

Chip Security Act

This bill requires covered integrated circuit products (e.g., advanced computing chips) to incorporate certain security mechanisms.

Specifically, the bill directs the Department of Commerce to require any covered integrated circuit product to have chip security mechanisms that implement location verification before the product is exported, reexported, or in-country transferred to or in a foreign country.

Commerce must require any person that has received a license or other authorization under the Export Control Reform Act of 2018 to export, reexport, or in-country transfer a covered product to promptly report to Commerce's Bureau of Industry and Security if the person obtains credible information that the product has been diverted away from its intended location or has been subjected to tampering.

Additionally, Commerce must conduct an assessment and report to Congress on whether additional chip security mechanisms should be adopted. If Commerce determines additional security measures are necessary, then Commerce must require any covered product to include the secondary chip security mechanisms before the product is exported, reexported, or in-country transferred to or in a foreign country.

The bill authorizes Commerce to take certain enforcement actions, such as verifying the ownership and location of a covered product that has been exported, reexported, or in-country transferred to or in a foreign country.

Commerce must, within two years of the bill's enactment and annually thereafter for three years, assess new chip security mechanisms and report to Congress.