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Moolenaar Urges Trump Administration To Enforce Biden-Era Chip Vetting Rule After Sophgo‑TSMC Revelations

Moolenaar Urges Trump Administration To Enforce Biden-Era Chip Vetting Rule After Sophgo‑TSMC Revelations
Rep. John Moolenaar urges Trump to enforce Huawei chip export rules

Rep. John Moolenaar urged the Trump administration to enforce a Biden-era rule requiring chipmakers to vet orders that may be fronts for sanctioned Chinese firms. The rule, finalized in January 2025, followed revelations that Sophgo used TSMC to fabricate chips later found in Huawei‑branded AI processors. Moolenaar warned that exempting firms like TSMC would heighten the risk of repeat export-control failures and said enforcement is essential to preserve U.S. technological leadership.

Republican Representative John Moolenaar, chair of the House Select Committee on China, has urged the Trump administration to enforce a Biden-era rule that requires chipmakers to vet orders for advanced logic chips that could be routed through front companies for sanctioned Chinese firms.

Letter To Commerce Department

In a letter to Jeffrey Kessler, the Commerce Department's top export-control official, Moolenaar called the rule "a critical step in preventing [China] from accessing high-end U.S. chips and preserving America's technological edge" and pressed the department to implement and enforce it. Reuters, which obtained the correspondence, said the letter had not previously been made public.

Why The Rule Was Adopted

The Biden administration finalized the measure in January 2025 after disclosures that Chinese chip designer Sophgo used Taiwan Semiconductor Manufacturing Co. (TSMC) to fabricate chips that later appeared inside Huawei-branded AI processors — despite Huawei being subject to broad U.S. sanctions. Lawmakers say the rule was designed to "close the loophole that Huawei and Sophgo exploited."

Moolenaar warned: if firms such as TSMC determine their products fall outside the rule's scope, "it would dramatically increase the risk of another Sophgo-like export control failure."

Enforcement Uncertainty And Political Pressure

The appeal comes amid uncertainty about enforcement. After President Trump returned to office, his administration signaled it would not enforce a related Biden-era chip rule that the manufacturer requirement references, casting doubt on the broader regulatory framework.

Moolenaar's letter reflects growing pressure within the Republican Party for tougher export controls on contract chipmakers. Earlier this summer, Senator Jim Banks and other Republicans urged the administration to tighten restrictions so contract manufacturers cannot produce cutting-edge AI chips for foreign subsidiaries of Chinese firms. Rep. Bill Huizenga also criticized Kessler, and the administration's decision to permit Nvidia to resume some advanced AI chip sales to China has drawn pushback from lawmakers on both sides of the aisle.

Responses

The Commerce Department, Huawei, Sophgo and TSMC did not respond to requests for comment.

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