The Senate’s newly introduced Stealing Our Chips Act gives the Commerce Department fresh tools to police advanced semiconductor shipments, including a whistle‑blower bounty that can return up to 30 % of fines. By tightening export licensing for top‑tier GPUs, the bill aims to curb illicit transfers while still allowing vetted sales under strict conditions.
Key Provisions of the Stealing Our Chips Act
The legislation authorizes the Bureau of Industry and Security (BIS) to create an Export Compliance Accountability Fund funded entirely by penalties on violators. When a tip triggers a fine exceeding $1 million, the whistle‑blower can receive between 10 % and 30 % of that amount, potentially rewarding insiders with hundreds of millions of dollars.
Whistle‑blower Reward Program
Whistle‑blowers will be protected from retaliation and may submit reports anonymously. BIS must evaluate each tip within 60 days and keep the source informed of progress. This mirrors the Securities and Exchange Commission’s successful bounty system, which has generated billions in penalties over the past decade.
Export Licensing Changes for High‑End GPUs
A new rule shifts the licensing of cutting‑edge GPUs such as NVIDIA’s H200 and AMD’s MI325X from an automatic denial to a case‑by‑case review for shipments to China and Macau. The framework adds a 25 % tariff on approved sales, caps shipments at 50 % of U.S. volume, and requires third‑party testing and rigorous “know‑your‑customer” checks.
Impact on Major Chipmakers
Samsung and SK Hynix received annual licenses to continue shipping certain chip‑making tools after their Validated End‑User status expired. These licenses are subject to yearly renewal, injecting uncertainty into long‑term supply‑chain planning.
Samsung and SK Hynix Licensing
The annual renewal process forces both companies to maintain detailed compliance records. While the flexibility helps keep critical equipment flowing, the lack of multi‑year certainty could affect capacity forecasts and investment decisions.
U.S. Designers and Chinese Buyers
U.S. chip designers now face a narrow window for selling to Chinese data‑center operators, but only under strict conditions that preserve domestic supply. For Chinese AI firms, the higher tariff and volume caps translate into steeper costs and reduced access to the latest hardware.
Compliance Challenges and Opportunities
Compliance teams must adapt quickly to the new whistle‑blower landscape. Internal reports could trigger massive fines if not handled properly, so you’ll need robust procedures to assess and respond to tips. At the same time, the bounty program offers a powerful incentive to uncover violations that might otherwise go undetected.
Risk Management for Internal Reports
Organizations should integrate tip‑assessment workflows into existing audit cycles. By flagging potential export‑control breaches early, you can mitigate the risk of hefty penalties and demonstrate proactive cooperation with BIS.
Strategic Benefits for U.S. Firms
The shift from a blanket denial policy to case‑by‑case reviews could level the playing field for U.S. companies that have been hamstrung by previous restrictions. If you can navigate the new licensing requirements, you may gain access to lucrative markets while staying compliant.
- Higher penalties: Fines now exceed $1 million for serious violations.
- Whistle‑blower incentives: Rewards of up to 30 % of collected penalties.
- Targeted tariffs: 25 % duty on approved high‑end GPU sales to China.
- Volume caps: Shipments limited to half of U.S. domestic volume.
