US lawmaker wants gov't to enforce regulation to ensure 'chipmakers conduct adequate due diligence on their customers' — House member calls for Biden-era export control to be enforced

Congressman John Moolenaar has written to the Commerce Department requesting clarification on whether the Foundry Due Diligence Rule, introduced under the outgoing administration, is still in force. The rule was created after a case where chips made for a Chinese firm were ultimately used by a restricted Chinese technology company. The request seeks either explicit guidance confirming the rule’s applicability or a formal amendment to restore its licensing requirements.

The rule currently obliges foundries and OSAT providers that export chips built on 14/16 nm or more advanced processes to assume those devices fall under AI-related export controls, unless a specific exemption is granted. This adds a layer of due-diligence work for manufacturers, who must identify end-users and potentially secure licenses before shipment. The cost is primarily administrative, involving verification procedures and possible licensing fees.

Enforcement uncertainty arose when the subsequent administration announced it would not enforce the rule, leaving the industry with mixed interpretations. Without a clear stance, some foundries may continue to ship advanced dies to non-approved designers outside China without the required checks. The proposed clarification would close that loophole, but it would not affect older, less advanced process nodes that are exempt from the rule.

If the Bureau issues the requested guidance, foundries will have a definitive compliance target, reducing legal risk and aligning export practices with U.S. policy. Conversely, if no guidance is issued, the status quo of ambiguous enforcement persists, potentially allowing prohibited technology transfers to continue. The outcome directly impacts supply-chain risk management for companies that rely on contract manufacturing.