Rep. John Moolenaar (R-MI), chairman of the House Select Committee on China, requested that the Trump administration ensure chip manufacturers do not provide advanced logic chips to specific Chinese companies. In a letter sent Thursday to Jeffrey Kessler at the Commerce Department, Moolenaar urged the enforcement of a rule regarding the scrutiny of advanced chip orders.
The rule in question was introduced by the Biden administration in January 2025. It requires semiconductor manufacturers to investigate orders to ensure they are not serving as fronts for untrusted firms. The measure was developed following reports that chips designed by Sophgo and manufactured by Taiwan Semiconductor Manufacturing Company (TSMC) were found in artificial intelligence (AI) processors sold by Huawei, a company currently under U.S. sanctions.
Moolenaar’s request follows a decision by the Trump administration not to enforce a related Biden-era regulation, which has led to questions regarding the future of the manufacturer scrutiny rule. Moolenaar stated that factories like TSMC must apply these rules to prevent "export control failure." The Commerce Department, Huawei, Sophgo, and TSMC did not provide comments in response to the letter.
A person working in the technology sector or investing in semiconductor stocks would notice shifts in corporate compliance requirements and potential changes to export markets. If the Trump administration continues a more lenient approach, companies may see fewer restrictions on high-end sales to Chinese entities; conversely, if the administration heeds congressional requests for tighter controls, firms would face stricter vetting processes for their overseas orders. These changes influence the day-to-day operations of sales and legal departments at major chip firms.
The outcome of this request will set a precedent for how the current administration manages trade relations and technological competition with China. Other lawmakers, including Sen. Jim Banks (R-IN) and Rep. Bill Huizenga (R-MI), have previously called for similar restrictions or criticized current enforcement levels. The next steps depend on the Commerce Department’s response to Moolenaar’s letter and whether the administration decides to maintain or retract the January 2025 rule. No specific deadline for a response was reported.