POLICY MEMO — ONE PAGE
2026

The end of chip smuggling

A workable blueprint for a chip licensing regime

THE PROBLEM

Our current export controls stop at the border. A chip that slips through leaves no record. It becomes shadow compute, and it forces American planners to assume the worst about Chinese capability instead of measuring it. Uncertainty speeds the race. The controls aren’t too strict or too loose. They’re too crude.

THE SOLUTION

Every chip ships with a signed compute budget that counts down as the chip runs. Renewing it takes a cryptographic signature from an authorized party. No signature, no compute. From the next hardware generation onward, a smuggled chip is a brick. Rules vary by destination: allies and partners get metering only; restricted destinations get metering, cluster-size caps, and inference-only mode with periodic inspections. The chip never reports what you run: no models, no weights, no data.

THE PLAN

The Commerce Department can break the deadlock by publishing a license exception under authority it already holds. Chips with certified hardware guarantees earn standing, streamlined export to markets now capped or reviewed one deal at a time. None of this needs new law or a vote in Congress. Regulators can write the rule in a few months. The first governed silicon ships in roughly three years, and coverage compounds with every generation after. Existing controls continue unchanged in the meantime.

THE ALIGNMENT OF INCENTIVES
CHIPMAKERSStanding authorization instead of fragile one-off approvals.
GOVERNMENTEnforcement that doesn’t depend on catching smugglers.
BUYER COUNTRIESMore access.
USBetter visibility into where foreign compute concentrates.
WHAT THIS BUYS

Any future compute agreement lives or dies on verification: every FLOP traceable to a signed budget. This plan builds that accounting now, while it’s cheap, so the machinery exists when the moment arrives. It is the half of treaty verification the US can build without anyone’s permission.

The research exists. The legal authority exists. The technology doesn’t. That changes now.