US Representative Bill Foster has introduced legislation aimed at preventing the smuggling of Nvidia’s advanced artificial intelligence (AI) chips into China, circumventing US export controls, according to a Reuters report.

The proposed bill seeks to mandate that chipmakers implement mechanisms to track the location of their chips post-sale and ensure that unlicensed chips cannot be activated.

The legislation has garnered support from both Democratic and Republican lawmakers, reflecting bipartisan concern over national security risks posed by unauthorised AI development in China.

The bill would require the US Department of Commerce to draft regulations within six months to enforce these measures.

Foster and technical experts argue that the necessary tracking technologies are already embedded in current chips.

The legislation follows reports indicating that, despite export restrictions, Nvidia chips have been used in China’s AI advancements, including those by DeepSeek.

Nvidia, a leading supplier of AI chips, has been working closely with the US government to develop products that comply with export regulations while maintaining its presence in the Chinese market.

However, the company has warned that tightening US export controls could hinder product development and force it to shift operations out of certain countries.

The proposed legislation represents a significant step in the US government’s efforts to control the flow of advanced AI technology to China and safeguard national security interests.