Two American lawmakers have urged the Trump administration to address loopholes that lets chip contract ​manufacturers such as Taiwan Semiconductor Manufacturing (TPE:2330) sell advanced AI chips to overseas subsidiaries of Chinese companies, Reuters reported Tuesday.

In a letter to the Bureau of Industry and Security, Senator Jim Banks, R-Ind., and Senator Andy Kim, D-NJ, asked the agency's chief ​, Jeffrey Kessler, to directly address the issue of subsidiaries of Chinese firms ordering custom chips, the report said.

"Export controls that can be circumvented through fabrication orders placed at the world's most advanced foundry ⁠offer ​no meaningful protection to American national security or ​to the competitiveness of United States industry," the senators reportedly wrote in the letter.

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