U.S. Congress advanced a slate of bipartisan bills targeting semiconductor exports, notably the Multilateral Alignment of Technology Controls on Hardware Act, which would impose stricter licensing requirements on high-end chip-making equipment shipments to China. The move signals growing legislative momentum to constrain the transfer of advanced AI and semiconductor technologies.

Beijing’s Ministry of Commerce criticized the measures as weaponizing national security and warned they could severely disrupt global supply chains. While specific countermeasures were not detailed, the government indicated it may restrict exports of rare earth minerals or other essential inputs to protect domestic firms.

Nvidia relies on specialized manufacturing equipment at key foundries, and tighter U.S. export controls could delay or limit its chip production capacity for high-end GPUs. Investors are reassessing the risk of prolonged decoupling between U.S. and Chinese tech ecosystems, which may drive up costs and shift manufacturing strategies.