[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1705 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                S. 1705

To require the Secretary of Commerce to issue standards with respect to 
chip security mechanisms for integrated circuit products, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 8, 2025

  Mr. Cotton introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To require the Secretary of Commerce to issue standards with respect to 
chip security mechanisms for integrated circuit products, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Chip Security Act''.

SEC. 2. SENSE OF CONGRESS.

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

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate; and
                    (B) the Committee on Foreign Affairs of the House 
                of Representatives.
            (2) Chip security mechanism.--The term ``chip security 
        mechanism'' means a software-, firmware-, or hardware-enabled 
        security mechanism or a physical security mechanism.
            (3) Covered integrated circuit product.--The term ``covered 
        integrated circuit product'' means--
                    (A) an integrated circuit classified under Export 
                Control Classification Number 3A090 or 3A001.z;
                    (B) a computer or other product classified under 
                Export Control Classification Number 4A090 or 4A003.z; 
                or
                    (C) an integrated circuit or computer or a product 
                containing an integrated circuit or computer that is 
                classified under an Export Control Classification 
                Number that is a successor or substantially similar to 
                the numbers listed in subparagraphs (A) and (B).
            (4) Export.--The term ``export'' has the meaning given that 
        term in section 1742(3) of the Export Control Reform Act of 
        2018 (50 U.S.C. 4801(3)).
            (5) In-country transfer.--The term ``in-country transfer'' 
        has the meaning given that term in section 1742(6) of the 
        Export Control Reform Act of 2018 (50 U.S.C. 4801(6)).
            (6) Reexport.--The term ``reexport'' has the meaning given 
        that term in section 1742(9) of the Export Control Reform Act 
        of 2018 (50 U.S.C. 4801(9)).
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.

SEC. 4. REQUIREMENTS FOR SECURITY MECHANISMS FOR EXPORT OF INTEGRATED 
              CIRCUIT PRODUCTS.

    (a) Primary Requirements for Chip Security Mechanisms.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary shall require any 
        covered integrated circuit product to be outfitted with chip 
        security mechanisms that implement location verification, using 
        techniques that are feasible and appropriate on such date of 
        enactment, before it is exported, reexported, or in-country 
        transferred to or in a foreign country.
            (2) Notification requirement.--Not later than 180 days 
        after the date of the enactment of this Act, the Secretary 
        shall require any person that has received a license or other 
        authorization under the Export Control Reform Act of 2018 (50 
        U.S.C. 4811 et seq.) to export, reexport, or in-country 
        transfer a covered integrated circuit product to promptly 
        report to the Under Secretary of Industry and Security, if the 
        person obtains credible information that the product--
                    (A) is in a location other than the location 
                specified in the application for the license or other 
                authorization;
                    (B) has been diverted to a user other than the user 
                specified in the application; or
                    (C) has been subjected to tampering or an attempt 
                at tampering, including efforts to disable, spoof, 
                manipulate, mislead or circumvent location verification 
                mechanisms or other chip security mechanisms.
    (b) Development of Secondary Requirements for Chip Security 
Mechanisms.--
            (1) Assessment.--
                    (A) In general.--Not later than one year after the 
                date of the enactment of this Act, the Secretary shall, 
                in coordination with the Secretary of Defense--
                            (i) conduct an assessment to identify what 
                        additional mechanisms, if any, should be added 
                        to the primary chip security mechanisms 
                        required under subsection (a)(1)--
                                    (I) to enhance compliance with the 
                                requirements of the Export Control 
                                Reform Act of 2018;
                                    (II) to prevent, hinder, and detect 
                                the unauthorized use, access, or 
                                exploitation of covered integrated 
                                circuit products;
                                    (III) to identify and monitor 
                                smuggling intermediaries; and
                                    (IV) to achieve any national 
                                security or foreign policy objective of 
                                the United States that the Secretary 
                                considers appropriate; and
                            (ii) if the Secretary identifies any such 
                        mechanism, develop requirements for outfitting 
                        covered integrated circuit products with that 
                        mechanism.
                    (B) Elements.--The assessment required by paragraph 
                (1) shall include--
                            (i) an examination of the feasibility, 
                        reliability, and effectiveness of--
                                    (I) methods and strategies that 
                                prevent the tampering, disabling, or 
                                other manipulating of covered 
                                integrated circuit products;
                                    (II) workload verification methods;
                                    (III) methods to modify the 
                                functionality of covered integrated 
                                circuit products that have been 
                                illicitly acquired; and
                                    (IV) any other method the Secretary 
                                determines appropriate for the 
                                prevention of unauthorized use, access, 
                                or exploitation of covered integrated 
                                circuit products;
                            (ii) an analysis of--
                                    (I) the potential costs associated 
                                with implementing each method examined 
                                under clause (i), including an analysis 
                                of--
                                            (aa) the potential impact 
                                        of the method on the 
                                        performance of covered 
                                        integrated circuit products; 
                                        and
                                            (bb) the potential for the 
                                        introduction of new 
                                        vulnerabilities into the 
                                        products;
                                    (II) the potential benefits of 
                                implementing the methods examined under 
                                clause (i), including an analysis of 
                                the potential increase--
                                            (aa) in compliance of 
                                        covered integrated circuit 
                                        products with the requirements 
                                        of the Export Control Reform 
                                        Act of 2018; and
                                            (bb) in detecting, 
                                        hindering, and preventing 
                                        unauthorized use, access, or 
                                        exploitation of the products; 
                                        and
                                    (III) the susceptibility of the 
                                methods examined under clause (i) to 
                                tampering, disabling, or other forms of 
                                manipulation; and
                            (iii) an estimate of the expected costs to 
                        implement at-scale methods to tamper with, 
                        disable, or manipulate a covered integrated 
                        circuit product, or otherwise circumvent the 
                        methods examined under clause (i).
            (2) Report to congress.--
                    (A) In general.--Not later than one year after the 
                date of the enactment of this Act, the Secretary, in 
                coordination with the Secretary of Defense, shall 
                submit to the appropriate congressional committees a 
                report on the results of the assessment required by 
                paragraph (1), including--
                            (i) an identification of the chip security 
                        mechanisms, if any, to be included in the 
                        requirements for secondary chip security 
                        mechanisms; and
                            (ii) if applicable, a roadmap for the 
                        timely implementation of the secondary chip 
                        security mechanisms.
                    (B) Form.--The report required by paragraph (1) 
                shall be submitted in unclassified form, but may 
                include a classified annex.
            (3) Implementation.--
                    (A) In general.--If any mechanisms are determined 
                by the Secretary to be appropriate, the Secretary 
                shall, not later than 2 years after the date on which 
                the Secretary completes the assessment required by 
                paragraph (1), require any covered integrated circuit 
                product to be outfitted with the secondary chip 
                security mechanisms identified pursuant to paragraph 
                (1)(A) before the product is exported, reexported, or 
                in-country transferred to or in a foreign country.
                    (B) Privacy.--In implementing requirements for 
                secondary chip security mechanisms under subparagraph 
                (A), the Secretary shall prioritize confidentiality.
    (c) Enforcement Authority.--In carrying out this section, the 
Secretary may--
            (1) verify, in a manner the Secretary determines 
        appropriate, the ownership and location of a covered integrated 
        circuit product that has been exported, reexported, or in-
        country transferred to or in a foreign country;
            (2) maintain a record of covered integrated circuit 
        products and include in the record the location and current 
        end-user of each such product; and
            (3) require any person who has been granted a license or 
        other authorization under the Export Control Reform Act of 2018 
        to export, reexport, or in-country transfer a covered 
        integrated circuit product to provide the information needed to 
        maintain the record.
    (d) Annual Assessment and Report on New Chip Security Mechanisms.--
Not later than 2 years after the date of the enactment of this Act, and 
annually thereafter for 3 years, the Secretary shall--
            (1) in coordination with the Secretary of Defense, conduct 
        an assessment of new chip security mechanisms that have been 
        developed in the year preceding the date of the assessment; and
            (2) submit to the appropriate congressional committees a 
        report that includes--
                    (A) a summary of the results of the assessment 
                required by paragraph (1);
                    (B) an evaluation of whether any of the new 
                mechanisms assessed under paragraph (1) should be added 
                to or replace any of the existing requirements for 
                secondary chip security mechanisms developed under 
                subsection (b)(1); and
                    (C) any recommendations for modifications to 
                relevant export controls to allow for more flexibility 
                with respect to the countries to or in which covered 
                integrated circuit products may be exported, 
                reexported, or in-country transferred if the products 
                include chip security mechanisms that meet the 
                requirements developed under subsection (b)(1).
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