Comment by Consumer Technology Association

Enacting the current draft of the Chip Security Act (CSA) would erode trust and endanger the Administration’s vision to diffuse U.S. AI technology. Specifically, burdensome rules on U.S. companies not required for foreign competitors risk incentivizing customers to shift to non-U.S. suppliers, undermining U.S. technology leadership. The CSA would require chip manufacturers to implement location verification systems within covered products, which creates several logistical and commercial concerns.