Nvidia has privately informed U.S. Representative Bill Foster that it is technically feasible to implement chip tracking measures as outlined in the Chip Security Act, according to MIT Technology Review. The legislation, introduced in May 2025, aims to prevent smuggling of advanced AI chips to China by requiring geotracking verification of chip locations.
Despite claims from an industry group that such anti-smuggling measures may be 'potentially infeasible,' Nvidia’s representatives assured Foster, a Democrat and cosponsor of the bill who serves on the Committee on Science, Space, and Technology, that the technology can be developed. The Chip Security Act is set to take effect by March 2026.
The news comes amid controversy surrounding Nvidia CEO Jensen Huang, who resigned following reports of an affair with an alleged Chinese spy. For Japanese markets, where semiconductor supply chains and export controls play a critical role, developments in chip security legislation in the U.S. could influence regional trade dynamics and regulatory approaches.