U.S. Red Tape Pushes Critical AI Chip Innovation Overseas

America was built by workers, builders, and innovators. American chemistry powers the manufacturing that keeps this nation strong—from the fertilizer that feeds our farms to the chips driving artificial intelligence.

Producing a single computer chip requires over 500 specialty chemistries developed by U.S. workers in American plants. President Donald Trump has prioritized rebuilding American manufacturing as a central national goal, one that unites those concerned about jobs, supply chains, and national security.

When America makes things, it strengthens itself. When production shifts overseas, we lose not just jobs but self-reliance. The pandemic revealed this stark reality: critical supply chains become too dependent on other countries, allowing nations like China to gain excessive control over essential manufacturing while the United States bears the consequences.

Today, a broken federal review process managed by the Environmental Protection Agency (EPA) undermines American manufacturing ambitions. This system slows innovation, creates uncertainty for investors, and hinders efforts to keep the next generation of production within U.S. borders.

A major contributor is the Toxic Substances Control Act (TSCA), a law most Americans have never heard of. TSCA governs how new chemistries reach the market. Currently, more than 446 American chemical compounds are stuck in EPA review with 92% past their mandatory deadline and over 300 waiting longer than a year.

While U.S. innovators sit idle, China accelerates. It is now the world’s largest chemical producer—roughly four times our industry—and builds new facilities at breakneck speed. Each day this backlog persists, China gains ground while America falls further behind.

Consider this real-world example: An American chemical manufacturer developed breakthrough cooling technology for high-performance AI chips. But due to delays in EPA review, the product is now being manufactured overseas. In a race to dominate artificial intelligence, it’s our own bureaucratic inertia that has pushed an American innovation abroad.

This issue does not stem from weakened safety standards. America’s chemical safeguards remain robust and must stay so. The problem lies in a slow, unpredictable bureaucracy that has drifted away from sound science toward worst-case speculation.

True science evaluates chemistries based on facts, evidence, and real-world application—not fear-driven assumptions that stifle progress. When Washington prioritizes ideology over evidence, innovation stalls and jobs move overseas.

EPA Administrator Lee Zeldin deserves credit for recognizing the problem and initiating improvements. Early indicators show promise: in a recent Senate hearing, Zeldin stated the agency expects to approve more premanufacture notices (PMNs) in 2026 than in any of the past five years.

However, administrative fixes alone are insufficient. Changes made by one administration can be undone by the next. For TSCA to consistently serve American workers, manufacturers, and consumers, Congress must act—before September 30.

The fees authority funding TSCA (paid for by industry, not taxpayers) expires on that date. Lawmakers have a critical window to reauthorize these fees and implement targeted reforms that make the program more predictable, transparent, and science-based.

Legislative efforts are advancing in both chambers: House members Brett Guthrie and Gary Palmer are advancing a bill, while Senate leaders Shelley Moore Capito (R-W.Va.) and John Curtis (R-Utah) are pushing for action. Senator Pete Ricketts has also introduced legislation to restore sound science principles.

With less than four months until the deadline, Congress must enact TSCA improvements before this opportunity vanishes.

President Trump has set a clear goal of strengthening American manufacturing. EPA is taking important steps forward. Now, Congress must complete the work and ensure these reforms are enacted by September 30.

American chemistry helped build this nation. Let us keep building it here in America—by Americans, for Americans.

Congress must act swiftly to fix TSCA, strengthen U.S. competitiveness, and keep American manufacturing moving forward.
Chris Jahn is the President & CEO of the American Chemistry Council (ACC).