Moolenaar Introduces SCALE Act To Create Objective Chip Export Standards
Chairman John Moolenaar of the Select Committee on China has introduced the Semiconductor Controls Adjusted to Limit Exports (SCALE) Act. The legislation would establish a clear standard for export controls on the sale of advanced semiconductors to China.
“The SCALE Act will help secure the future of America’s dominance in artificial intelligence by ensuring American companies never sell the best chips in the world to China. By grounding semiconductor export controls in objective metrics, we can ensure a level playing field for American business, while protecting national security as China races to catch up to us,” said Moolenaar.
The SCALE Act directs the Secretary of Commerce, in coordination with the Director of National Intelligence, to create and publicly release objective performance metrics on China’s AI hardware capabilities. The metrics used would include key indicators such as total processing power, interconnect bandwidth, and memory capacity, and will be updated regularly to reflect real-world developments in the AI race.
The bill establishes a rolling technical threshold for export tied directly to an adversary’s demonstrated ability to produce advanced chips at scale. Under this framework, exports are permitted only up to 110 percent of the performance of chips that U.S. adversaries can already manufacture domestically at meaningful production levels which can be defined as at least 25 percent of their annual demand. This ensures U.S. and allied companies can continue competing in global markets where it is safe to do so, without enabling breakthroughs that adversaries cannot achieve on their own.
The legislation also includes strict safeguards to prevent adversaries from closing the gap with the United States. License applications will be subject to a presumption of denial if exports would cause adversary-controlled AI hardware to exceed five percent of the total U.S. AI hardware base. Additionally, exports cannot come at the expense of American customers, requiring certification that U.S. supply chains and domestic demand will not be disrupted. Importantly, even exports that fall below the rolling technical threshold (RTT) would remain subject to existing controls, including restrictions for entities on the Commerce Department’s Entity List.
By requiring regular assessments of adversaries’ capabilities and linking export controls to measurable thresholds, the SCALE Act creates a predictable, enforceable system that strengthens U.S. leadership in artificial intelligence and denies strategic competitors the ability to achieve parity with the United States.
Read the text of the SCALE Act here.