On June 8, 2026, U.S. Senators Jim Banks and Andy Kim called on the Trump administration to strengthen regulations on contract chip manufacturers like Taiwan Semiconductor Manufacturing Co., to prevent them from producing advanced AI chips for overseas subsidiaries of Chinese firms. This request follows the recent guidance from the U.S. Department of Commerce, which clarified that restrictions on advanced chip shipments do apply to such subsidiaries located outside China. However, experts warn that unresolved loopholes could allow Chinese firms to circumvent these controls, undermining U.S. efforts to restrict China’s access to advanced computing capabilities.

Andy Kim: Andy Kim is a Democratic U.S. Senator from New Jersey with a background in national security and trade policy. He joined the bipartisan effort on June 8, 2026, signing the letter to BIS chief Jeffrey Kessler highlighting risks to U.S. national security and industry competitiveness from unaddressed loopholes in chip export rules.
Jim Banks: Jim Banks is a Republican U.S. Senator from Indiana focused on national security and technology competition with China. He co-authored the June 2026 letter to BIS urging stricter rules on contract chipmakers to prevent circumvention of U.S. export controls on advanced AI chips via Chinese subsidiaries abroad.
Jeffrey Kessler: Jeffrey Kessler serves as Under Secretary of Commerce for Industry and Security and chief of the Bureau of Industry and Security (BIS). He is the recipient of the senators’ June 2026 letter requesting action to address gaps allowing Chinese firms’ overseas units to order custom advanced chips from manufacturers like TSMC.
Taiwan Semiconductor Manufacturing Co: Taiwan Semiconductor Manufacturing Co (TSMC) is the world’s leading contract chip manufacturer, producing advanced semiconductors for clients including those developing AI technologies. In the context of the news, it is specifically cited by U.S. senators as a key foundry where custom advanced AI chips could be ordered by overseas subsidiaries of Chinese firms, prompting calls for tighter export controls to close potential loopholes.

{“Export Controls”: “Recently, the U.S. Department of Commerce issued guidance clarifying that restrictions on advanced AI chip shipments apply to subsidiaries of Chinese companies located outside China.”, “Legislative Action”: “Senators Jim Banks and Andy Kim sent a letter on June 8, 2026, to BIS leadership emphasizing that unresolved loopholes in export controls undermine U.S. restrictions on China’s access to advanced computing capabilities.”}