Commerce Chief Faces Senate Chip Probe

Commerce Secretary Howard Lutnick will testify before the Senate Banking Committee on December 10. The hearing follows a dispute over why the Department of Commerce took months to add Megaspeed International to the U.S. Entity List. The list restricts companies from buying advanced AI chips.

The controversy intensified after Nvidia CEO Jensen Huang resigned. Huang had a personal relationship with Alice Huang, the former leader of Megaspeed. Federal authorities suspect Alice Huang of being a Chinese spy. They believe Megaspeed directed advanced Nvidia chips to China, bypassing export controls.

Republican lawmakers are urging Lutnick to explain the delay. Senator Jim Banks of Indiana told Fox News on Thursday that the Commerce Department used loopholes to allow certain chip sales. Banks said this happened despite President Trump directing his administration to prevent such transactions.

Treasury Secretary Scott Bessent placed the blame on Commerce on Friday. He stated that his department, the Department of War, the U.S. Trade Representative, and the State Department supported adding Megaspeed to the Entity List for several months. Bessent noted that Commerce held the final authority to make the decision. He advised reporters to direct questions about internal processes to his Commerce counterparts.

Bessent declined to comment on reported interpersonal tensions between himself and Lutnick. The Commerce Department did not immediately respond to a request for comment. The hearing will focus on the timeline of decisions made regarding Megaspeed.

Lawmakers from both parties expect to press Lutnick on these issues. They will ask about the independence of Nvidia’s export decisions. They will also ask about potential conflicts of interest involving key figures in the semiconductor industry. The outcome of the testimony may influence future policies on AI chip exports.