Senate bill would ban sale of key AI chipmaking machines to China

A bipartisan group of senators introduced a bill that would severely limit the sale of advanced semiconductor machinery to China used for AI systems.

A bipartisan group of lawmakers introduced a bill in the House of Representatives on Thursday morning that would severely limit the sale of advanced semiconductor manufacturing equipment to China and a selection of other countries, closing what experts say are critical loopholes in America’s AI export controls.

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Led by Rep. Michael Baumgartner, R-Wash., the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act would tighten existing export controls for semiconductor manufacturing equipment — the specialized tools used to create AI chips — if it were to become law. The new restrictions, along with cooperation from allies to implement similar rules, would be likely to curtail China’s ability to build a fully domestic AI supply chain.

China’s imports of semiconductor manufacturing machinery have surged in recent years in tandem with soaring demand for AI chips in China and around the globe. China's imports of the equipment grew from $10.7 billion in 2016 to about $51.1 billion last year, according to analysis from Silverado Policy Accelerator, a Washington, D.C., think tank that focuses on national security and AI.