The US is secretly installing tracking devices in select batches of advanced AI chips to detect their illegal transfer to China, despite the partial easing of restrictions on semiconductor exports by the Trump administration.
According to Reuters sources, US authorities are using location-tracking technology in limited supplies of high-performance chips to detect their diversion to countries with existing export restrictions. The trackers are used selectively as part of investigations and can be hidden in packaging or inside servers.
Such measures help gather evidence against companies and individuals who profit from violating export regulations. The devices, according to supply chain participants, have been recorded in equipment from manufacturers Dell and Super Micro, which contains Nvidia and AMD chips.
In some cases, the trackers were the size of a smartphone, in others, they were tiny, disguised as server components. Sources say that sometimes manufacturers are aware of the devices being installed, but in some cases it is done without their knowledge.
The US dominates the global AI chip market and in recent years has restricted exports of semiconductors to China, citing its military modernization. Similar restrictions are also in place for Russia. China has responded by accusing Washington of trying to slow its technological development.
The use of trackers in export controls has a long history, dating back to 1985 when they were used to track controlled equipment. Today, the practice has become relevant again due to the increase in the smuggling of AI chips through third countries.
The covert surveillance of AI chip shipments demonstrates the US willingness to use harsh and technologically sophisticated methods to prevent illegal exports to China. This highlights the geopolitical importance of the semiconductor market and the growing rivalry over artificial intelligence.
