H.R. 6875: Artificial Intelligence Oversight of Verified Exports and Restrictions on Weaponizable Advanced Technology to Covered High-Risk Actors Act

This bill, titled the "Artificial Intelligence Oversight of Verified Exports and Restrictions on Weaponizable Advanced Technology to Covered High-Risk Actors Act," aims to establish stricter controls on the export of certain advanced technology, specifically integrated circuits, to countries deemed concerning for U.S. national security. Here’s a breakdown of the key provisions of the bill:

1. License Requirement for Exports

The bill requires that businesses seeking to export specific advanced integrated circuits to certain countries must obtain a federal license. This applies to:

• Countries classified as "countries of concern," which include:
  • China (including Hong Kong and Macau)
  • Cuba
  • Iran
  • North Korea
  • Russia
  • Venezuela (under Nicolás Maduro’s regime)
• Integrated circuits that meet specific performance criteria.

2. Definitions of Covered Integrated Circuits

Covered integrated circuits are defined based on their technological specifications, which may include:

• Classified under specific Export Control Classification Numbers (3A090 or 4A090)
• Having high performance in processing speed or data transfer.

3. Certification to Congress

Before approving any export licenses, the Under Secretary of Commerce must notify and provide documentation to Congress, including:

• Details about the quantity and specifications of the integrated circuits
• The end-user or consignee of the circuits
• Measures in place to ensure that the end-user does not engage in military or espionage activities
• Impact assessments on U.S. technological advantage and availability of integrated circuits for domestic users.

4. General License Prohibition

The bill prohibits issuing general licenses for the export of integrated circuits to these countries, meaning that each transaction must individually be assessed and approved.

5. Trusted United States Persons

There are provisions for exemptions to these licensing requirements if the integrated circuits are exported to "trusted United States persons." This designation requires meeting specific security standards and maintaining a level of operations that minimizes risks associated with technology transfer.

6. Termination of Existing Licenses

The bill states that any existing licenses for exporting integrated circuits to countries of concern will be terminated once this law is enacted. A temporary ban on issuing new licenses will also be enacted until a national security strategy is submitted to Congress.

7. National Security Strategy

Alongside the bill, the Secretary of Commerce is required to develop a national security strategy that addresses:

• Potential risks regarding physical and remote access by countries of concern to advanced technology
• Military or intelligence implications linked to integrated circuits' exports
• An analysis of production capabilities of covered integrated circuits in China and comparisons with U.S. capabilities.

8. Implementation Timeline

The Under Secretary has specific timeframes within which to implement these regulations, including gathering public input and assessing standards for trusted United States persons.

Relevant Companies

• INTC (Intel Corporation): As a leading manufacturer of semiconductors, Intel may face significant regulatory challenges and changes in its export processes if this bill is enacted.
• AMD (Advanced Micro Devices, Inc.): Similar to Intel, AMD produces integrated circuits that could be affected by export restrictions, impacting its international sales strategy.
• NVDA (NVIDIA Corporation): As a provider of advanced graphics processing units and integrated circuits, NVIDIA may need to reevaluate export practices for markets categorized as high-risk.