US House Committee Chair Pushes for Stricter Chip Export Controls Following Nvidia Scandal

New Legislative Momentum

Representative Brian Mast, the Republican chair of the House Foreign Affairs Committee, has signaled that new, stringent guardrails on the export of advanced US-made chips to China are increasingly likely to be incorporated into the annual defense bill. The legislative push comes as the US government intensifies its scrutiny over how high-end technology is distributed globally.

Mast, whose committee holds jurisdiction over export control policy, noted that the recent resignation of Nvidia CEO Jensen Huang has provided significant momentum for these measures. Huang stepped down from his position on Thursday following revelations regarding an extramarital relationship with an individual identified as a potential Chinese spy. Mast suggested that the scandal raises fundamental questions about the oversight of Nvidia’s supply chain, stating, “If he doesn’t know who he’s in bed with, he doesn’t know where all the chips are going either, and we know that for a fact.”

Proposed Legislative Measures

Lawmakers are currently deliberating on a package of three specific bills intended for inclusion in the must-pass defense legislation. Central to these proposals is the Chip Security Act, which aims to combat smuggling by mandating that advanced semiconductors be equipped with location-verification technology. This would allow authorities to track the movement of sensitive hardware more effectively.

In addition to the Chip Security Act, the proposed package includes two other critical measures. One bill seeks to tighten existing restrictions on the sale of chip-making equipment and encourages international allies to align their export policies with those of the United States. The second measure would grant Congress the authority to review individual licenses for the sale of advanced artificial intelligence chips, providing a new layer of legislative oversight to the export process.

Scrutiny of the Commerce Department

The legislative effort arrives amidst a complex political backdrop. While President Donald Trump has previously expressed skepticism regarding tighter chip restrictions and has historically approved deals allowing Nvidia to export high-end chips to China, the current climate in Congress appears to be shifting. Mast expressed continued confidence in Commerce Secretary Howard Lutnick, despite mounting pressure regarding the administration’s handling of chip policy.

However, Mast was notably less supportive when questioned about Jeffrey Kessler, the head of the Bureau of Industry and Security (BIS), which is responsible for managing export controls. When asked if he maintained confidence in Kessler, Mast declined to provide a direct answer, describing the relationship as an “argumentative dynamic” regarding the granular details of where chips are permitted to be sold. Mast confirmed that he intends to investigate the role of the BIS in the ongoing Nvidia controversy. A spokesperson for the bureau did not immediately provide a comment on the matter.

Calls for Testimony

As part of the ongoing investigation, Mast is actively pushing for former CEO Jensen Huang to testify before the committee. Mast indicated that he is currently in negotiations with Huang’s team, aiming for an appearance within the next week. The committee chair emphasized that he prefers a voluntary appearance but remains prepared to issue a subpoena if negotiations fail to proceed in good faith. “If negotiations shut off and we don’t think they’re in good faith, OK, fine, do that,” Mast told reporters. “I’ll just subpoena you for the next day. No big deal.” Nvidia has not yet issued a response to requests for comment regarding the potential testimony.

Source: businessinsider.com