US wants to embed GPS trackers in AI chips to prevent them from leaking to China and russia

US lawmakers have proposed a bill called the Chip Security Act, which would require manufacturers of high-performance AI chips (including Nvidia and AMD) to implement location tracking mechanisms to prevent advanced technologies from falling into “unfriendly states”, including China and Russia.

The new bill includes four key requirements for manufacturers:

1. Location verification: each chip must have a location-finding function before export.
2. Mandatory reporting: in case of a change in location or detection of facts of transfer, immediately inform the authorities.
3. Second-level technical protection: the US Department of Commerce will identify additional barriers against abuse.
4. Enhanced control: the US Department of Commerce will receive the authority to verify the facts of violations.

Lawmakers cite cases of AI chips being smuggled to China, where they are used to develop military technology and surveillance systems.

• In 2024–2025, the United States tightened its policy of controlling the export of AI technologies. The Chip Security Act came after the Trump administration repealed the Biden rule regulating the export of chips. Congressmen claim that China is actively circumventing export restrictions through front companies, using AI chips to strengthen the capabilities of the People’s Republic of China (PRC) army.
• The Chip Security Act is an attempt by the United States to protect its leadership in AI and to curb the use of American AI chips by authoritarian regimes. If the law is passed, it will set a precedent in the field of geopolitical regulation of semiconductors and intelligent systems.