S.Amdt. 6105

The Chip Security Act is an amendment proposed to be added to bill S. 4784. Its main purpose is to prevent the illegal diversion, theft, or unauthorized use of advanced integrated circuits and computing hardware—specifically those designed for artificial intelligence datacenters—especially to the Russian Federation and the People's Republic of China.

The amendment aims to add the following to the bill:

• Chip Security Mechanisms: It requires the Secretary of Commerce to implement security mechanisms to verify if covered products are illegally diverted to "destinations of concern." These mechanisms can include on-site audits, attestations by U.S. companies, or location verification.

• Regulatory Process: It mandates an initial assessment, stakeholder engagement with the private sector and experts, and the creation of a final rule within one year to require these security mechanisms for products exported, reexported, or transferred within foreign countries.

• Ongoing Oversight: The Secretary must conduct annual assessments of foreign competitiveness and periodic reviews to enhance security mechanisms, ensuring they do not hinder the product's functionality or undermine cybersecurity.

• Enforcement: It gives the Secretary authority to verify the ownership and location of products and maintain records of end-users. Any violations of this act are treated as violations of the Export Control Reform Act of 2018.