Washington, May 23: The U.S. Senate has passed a bipartisan bill aimed at preventing the smuggling of advanced American semiconductors into China. Concerns are growing in the U.S. that these chips could be used for military purposes and artificial intelligence (AI) operations by the Chinese government.
The legislation, titled the ‘Stop Stealing Our Chips Act,’ was introduced by Republican Senator Mike Rounds and supported by Democratic Senator Mark Warner. This bill will establish a whistleblower incentive program within the Bureau of Industry and Security (BIS) to encourage reporting of illegal semiconductor exports.
Rounds expressed his satisfaction, stating, “I am pleased that the ‘Stop Stealing Our Chips Act’ has passed the Senate.” He emphasized that the U.S. has taken significant steps to prevent American-made semiconductors from falling into the wrong hands, particularly those of China. Despite these efforts, he noted that China continues to smuggle these chips.
He warned that the rapid increase in AI usage has exacerbated the situation. “As the use of artificial intelligence grows, concerns about national security are becoming more serious. Our law will strengthen BIS’s ability to enforce export controls. Whistleblowers providing credible information about illegal activities will be incentivized to come forward,” he added.
The bill will now be sent to the House of Representatives for final approval before it can be signed by President Donald Trump.
Warner described the Senate’s vote as a crucial step towards tightening U.S. export controls. “The passage of the ‘Stop Stealing Our Chips Act’ today is a significant move to strengthen our export control mechanisms and protect America’s national security,” he stated. He further noted that as China continues to attempt to acquire advanced AI technology through illegal networks, stronger measures are needed to detect and prevent these violations.
According to the law, BIS must establish a secure public platform for whistleblowers to submit information within 120 days of the law’s enactment. The bill will also create an “Export Compliance Accountability Fund,” financed by penalties imposed for export control violations.
Under this proposal, whistleblowers providing essential information leading to successful actions in export control cases could receive rewards ranging from 10% to 30% of the total penalties collected. However, federal employees acting in their official duties and individuals associated with terrorism or sanctions lists will not be eligible for these rewards.
The law guarantees the confidentiality of whistleblowers’ identities and protects them from retaliation. Employers will be prohibited from firing, harassing, or discriminating against employees who report export control violations under the law.
Additionally, the bill mandates that credible reports must initiate formal investigations within 60 days. Whistleblowers will receive status updates on the investigation’s progress every 30 days until it concludes.
Rounds’ office reported that at least eight Chinese smuggling networks have been identified, each involved in transactions exceeding $100 million. The statement also noted that some restricted chips have reached Chinese entities under sanctions, including military research institutes and companies linked to the People’s Liberation Army.
In recent years, the U.S. has tightened export controls on advanced semiconductor technology due to escalating competition between the U.S. and China over AI, supercomputing, and military technology. U.S. officials have repeatedly argued that advanced chips designed by American companies could enhance China’s defense and surveillance capabilities if they reach China through third-party networks.
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