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US Lawmaker Calls for Enforcement of Chipmaker Due Diligence Export Control Rule
Key points
- Rep. Moolenaar urges enforcement of the 'Foundry Due Diligence Rule'.
- The rule requires chipmakers to verify end customers for advanced chips.
- It aims to prevent restricted Chinese entities from obtaining advanced chips.
- The Trump administration previously announced non-enforcement of this rule.
Call for Enforcement of Export Control
John Moolenaar, Chairman of the House Select Committee on China, has written a letter advocating for the enforcement of an existing US export control measure. This measure mandates that chipmakers conduct due diligence on their customers to prevent advanced chips from reaching restricted Chinese companies.
Background of the Foundry Due Diligence Rule
The 'Foundry Due Diligence Rule' was signed into law by Joe Biden in early 2025. It requires chip manufacturers to identify their end customers to prevent intermediaries from supplying restricted organizations, such as those tied to the Communist Party or the People's Liberation Army, with chips made using American technology. The rule was prompted by the discovery that TSMC-produced chips for China-based Sophgo were actually Huawei's Ascend 910B AI accelerators.
Uncertainty Regarding Implementation
In May 2025, the Trump administration announced it would not enforce this semiconductor regulation, creating uncertainty about its active implementation. Moolenaar's letter highlights that this ambiguity allowed Huawei to obtain millions of controlled Ascend logic dies from TSMC through its front company, Sophgo, in 2023 and 2024.
Rule's Requirements and Compliance
Before this rule, Chinese companies could misrepresent chip specifications and end-users to obtain restricted devices despite existing US export controls. The 'Foundry Due Diligence Rule' stipulates that foundries and OSAT providers exporting chips produced on 14/16nm-class process technologies or more advanced nodes must assume these devices are controlled AI processors subject to global licensing, unless an exemption applies. Moolenaar's letter indicates that foundries have generally complied with these requirements since the rule's inception.
Clarification Sought from Commerce Department
Moolenaar is asking the government to enforce the existing controls rather than introduce new, stricter ones. He believes the Commerce Department's Bureau of Industry and Security could clarify its stance on the 'Foundry Due Diligence Rule' by issuing guidance.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
House Select Committee on China Chairman John Moolenaar has requested the US government enforce an existing export control measure requiring chipmakers to verify end customers for advanced chips. This rule, known as the 'Foundry Due Diligence Rule,' was designed to prevent Chinese companies from circumventing restrictions on advanced chip acquisition, following instances where chips made by TSMC for Sophgo were identified as Huawei's Ascend 910B AI accelerators.