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Investing.com - Nvidia (NASDAQ:NVDA) is set to face a new U.S. bill in the coming weeks that will aim to verify the location of its artificial intelligence chips after they are sold, according to Reuters.
Shares in the semiconductor giant were lower in premarket U.S. trading on Tuesday.
U.S. Representative Bill Foster, a Democrat from Illinois, is preparing a bill that will direct U.S. regulators to track chips to ensure they comply with U.S. export controls, and to also introduce technology that will prevent AI chips from booting up unless they comply with export controls, Reuters reported.
The measures aim to prevent the flow of Nvidia’s advanced AI chips into China, especially amid strict U.S. export controls on chip sales to the country. They are also attempting to crack down on chips being smuggled into China.
Foster’s bill has support from fellow Democrats, while Republicans are also expected to signal support after it is introduced, Reuters reported. The government’s earlier efforts to control the flow of chips to China have drawn bipartisan support.
Nvidia’s chips are a key component of cutting-edge AI programs. The company until very recently was allowed to sell a less-powerful version of its AI chip in China, but the Trump administration recently introduced new measures placing more restrictions on chip sales to the nation.
(Ambar Warrick contributed reporting.)