H.R. 3447: Chip Security Act

This bill, known as the Chip Security Act, aims to establish requirements for enhancing the security of integrated circuit products, particularly those involved in international trade. Here's a summary of its key provisions:

Purpose

The primary goal of the Chip Security Act is to ensure that integrated circuits and computing hardware produced in the U.S. are safeguarded against unauthorized use, tampering, and diversion as they are exported or transferred to other countries. The bill emphasizes maintaining U.S. technological advantages and national security through better security mechanisms.

Requirements for Chip Security Mechanisms

The bill mandates the following:

• Development of Security Standards: The Secretary of Commerce is required to implement chip security mechanisms on covered integrated circuit products before these are exported or transferred internationally. These mechanisms must include location verification methods.
• License and Reporting Obligations: Individuals licensed to export covered products must report any credible information indicating that a product has been diverted, tampered with, or relocated from its authorized destination.

Assessment of Additional Security Measures

Within one year of the bill's enactment, the Secretary will conduct an assessment to identify additional security measures that could enhance the existing requirements. This may include:

• Methods to prevent unauthorized use or tampering.
• Workload verification techniques.
• Monitoring for potentially smuggling activities.

The Secretary will then develop additional requirements based on this assessment.

Reporting and Implementation Timeline

The Secretary must submit a report to Congress detailing the assessment results, including any new mechanisms that may need to be adopted. These additional security requirements could be mandated within two years of the assessment completion.

Ongoing Evaluation

After the initial assessments and implementations, the Secretary will conduct annual evaluations of new security mechanisms for three years. This is to ensure that emerging technologies and methods can be incorporated to enhance chip security continually.

Enforcement Provisions

The bill grants the Secretary of Commerce authority to:

• Verify the ownership and location of exported integrated circuits.
• Maintain records of these products, including details of their location and end-users.
• Require licensees to provide necessary information to help maintain these records.

Relevant Companies

• INTC (Intel Corporation) - As a major manufacturer of integrated circuits, Intel may need to comply with the new security mechanisms for its products, impacting its export processes and operational protocols.
• NVDA (NVIDIA Corporation) - NVIDIA produces graphics processing units (GPUs) and other computing hardware that may be classified under the export control regulations, thus influencing their security compliance strategies.
• AMD (Advanced Micro Devices, Inc.) - AMD, like Intel, manufactures integrated circuits that would require adherence to the new security standards for exports and international transfers.