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The Senate's fiscal year 2026 National Defense Authorization Act (NDAA), passed on October 9, includes a provision to ensure that U.S. manufacturers have priority access to advanced semiconductors.
Specifically, the Guaranteeing Access and Innovation for National Artificial Intelligence (GAIN AI) Act, co-sponsored by Senators Elizabeth Warren (D-MA) and Jim Banks (R-IN), would amend the Export Control Reform Act of 2018 by requiring chipmakers seeking licenses to export "advanced integrated circuits" to submit a "Certification of Priority for United States Customers" affirming that: (1) they have offered U.S. persons the right-of-first-refusal for the chips in question; (2) they have no current backlog of requests from U.S. customers and do not foresee the export creating one; (3) foreign customers are not being offered more advantageous pricing or terms than U.S. customers; and (4) the exported chips will not be used by foreign entities to compete with U.S. persons outside of their own domestic market.
The Act aims to shorten the lengthy procurement delays for advanced AI chips, giving U.S. businesses (including startups) priority over foreign entities as current demand continues to outpace supply.
Proponents of the Act argue that restricting exports is a matter of both economic competitiveness and national security, believing that every advanced chip sold abroad is one that cannot be used to accelerate U.S. research, development, and economic growth. Opponents, however, have downplayed the risk of domestic chip shortages, contending that overzealous export controls could alienate U.S. partners and drive them to rivals. They argue instead that the focus should be on boosting exports of the entire American "AI technology stack" to prevent foreign buyers from turning to Chinese-made technology.
Despite its inclusion in the Senate's NDAA, the GAIN AI Act's passage is far from guaranteed. The House version of the defense bill lacks a similar provision after a proposal from Representatives John Moolenaar (R-MI) and Raja Krishnamoorthi (D-IL) was blocked from a floor vote. Ultimately, the Act's fate now rests with the conference committee, where House and Senate negotiators will determine if it becomes law.
"Today, the Senate acted to make sure American customers — including small businesses and startups — aren't forced to wait in line behind China's tech giants when purchasing the latest AI chips. This bipartisan amendment is an important step to address the long wait times that U.S. companies face when purchasing these chips and promote continued U.S. technological innovation and leadership." - U.S. Senator Elizabeth Warren (D-Mass.)
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