U.S. Export Controls on Advanced Chips Failing to Block China and Russia, Senate Report Warns
A Senate investigation finds critical underfunding and enforcement gaps in Commerce Department efforts to limit semiconductor access for military use by adversaries.
- The Senate Permanent Subcommittee on Investigations found U.S. export controls on advanced semiconductors to China and Russia to be inadequate and poorly enforced.
- The Commerce Department's Bureau of Industry and Security (BIS) has been criticized for relying heavily on voluntary compliance by chipmakers and lacking sufficient resources for enforcement.
- Reports revealed that U.S. chips are still reaching Russian weapons systems and Chinese smuggling networks through front companies in countries like Armenia, Georgia, and Hong Kong.
- The BIS operates with a stagnant $191 million budget, limiting its ability to perform international end-use checks and hire necessary subject matter experts.
- Recommendations from the report include increased funding for BIS, stricter penalties for violations, and mandatory third-party reviews of semiconductor export compliance plans.