Senator Tweaks Chip Export Control Bill to Boost Its Chances
Sen. Jim Banks, R-Ind., has put forth several changes to try to soften opposition to a bill that would require U.S. manufacturers of advanced AI chips to make their products available to American firms before selling them to China and other "countries of concern," a supporter of such restrictions said Oct. 24.
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One revision, which is reflected in a new "discussion draft" that was shared with policymakers, would narrow the list of countries covered by the bill, said Chris MacKenzie, vice president of communications at tech policy nonprofit Americans for Responsible Innovation (ARI). While 23 U.S. arms embargoed countries, including China, would remain on the list, those that host military or intelligence facilities belonging to arms embargoed countries would be removed.
The change might mean that the United Arab Emirates would no longer be covered by the bill. The UAE has close ties to China but is slated to obtain advanced U.S. AI chips under a partnership unveiled in May (see 2505150063). "The Trump administration has prioritized getting chips to UAE, so it makes sense that they would want to clarify that UAE would not be subject to these restrictions," MacKenzie told Export Compliance Daily.
Although Hong Kong and Macau are not subject to the U.S. arms embargo, they would be added to the list of countries covered by the bill because of their ties to China. The revised bill also aims to address concerns that U.S. firms could hold up chip sales by requesting them in bad faith.
Another change would provide a license exemption for U.S. companies that send chips to their facilities in non-arms embargoed countries. This would put the bill's focus on U.S. chipmakers selling their products to non-U.S. firms in countries of concern.
It is unclear whether the proposed changes will be enough to overcome opposition from the U.S. semiconductor industry, which has described the original bill as overly complex (see 2509080065). While further revisions are possible as Congress and the Trump administration continue discussing the legislation, MacKenzie said he considers the new draft a sign that negotiators are making progress.
The Senate included Banks’ original bill, the Guaranteeing Access and Innovation for National Artificial Intelligence Act, or Gain AI Act, in the FY 2026 National Defense Authorization Act (NDAA) that it passed Oct. 9 (see 2509240062 and 2510100015). The House passed its own version of the NDAA, and the two chambers are ironing out the final version.
Proponents of the Banks bill say U.S. firms face long delays in obtaining chips due to a backlog of demand. Nvidia has dismissed such assertions as “fake news.”