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U.S. Hides Trackers in AI Chip Shipments to Stop Illegal Sales to China
U.S. authorities are secretly placing trackers in shipments of advanced AI chips to prevent illegal diversion to China, exposing a covert layer of tech export enforcement.
ND
by News Desk
2025-08-13
U.S. Hides Trackers in AI Chip Shipments to Stop Illegal Sales to China

U.S. authorities have secretly embedded location-tracking devices in targeted shipments of advanced AI chips to detect and prevent illegal diversion to China, according to sources familiar with the matter. The tactic, previously unreported, highlights the extreme lengths Washington is taking to enforce its export restrictions on high-performance semiconductors.

The hidden trackers are reportedly placed in select shipments under active investigation, targeting servers and hardware from manufacturers such as Dell and Super Micro, which often contain chips from Nvidia and AMD. The devices — sometimes as small as discreet embedded components — are concealed in packaging or even inside the servers themselves.

The U.S. began restricting exports of advanced AI chips to China in 2022 to curb Beijing’s military modernization and has extended similar limits to Russia. Authorities say the trackers help build cases against individuals and companies profiting from illegal exports.

A 2024 case saw Dell servers with Nvidia chips shipped with both large trackers the size of a smartphone and smaller hidden devices. U.S. enforcement agencies including the Department of Commerce’s Bureau of Industry and Security, Homeland Security Investigations, and the FBI are believed to be involved.

While Dell says it is unaware of any government tracking program, Super Micro declined to comment on security practices, and Nvidia and AMD offered no public statements. China’s foreign ministry said it was unaware of the issue, but Beijing has previously criticized U.S. chip restrictions as an attempt to stifle its technological rise.

Some China-based resellers have admitted to inspecting diverted shipments for hidden trackers, aware of the legal risks. In one criminal case, a co-conspirator even warned associates to “look for trackers carefully” in shipments of Nvidia-powered servers.

The use of trackers by U.S. export enforcement agencies dates back decades, but their role in today’s AI chip export battle underscores the growing tension between Washington and Beijing over control of cutting-edge technology.
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Semiconductors

USChina

AIChips

TechSecurity
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