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US embeds trackers in AI chip shipments to catch diversions to China: Reuters

The U.S. government uses hidden trackers in AI chip shipments from companies like Nvidia and AMD to enforce export controls and prevent chip diversion to China.

  • This month, U.S. authorities secretly placed location tracking devices in targeted shipments of advanced chips, sources said, to detect diversions to China.
  • In recent years, the United States has sought to limit chip exports to China, tracing organized AI chip smuggling via Malaysia, Singapore, and the UAE, sources said.
  • Multiple agencies including the Bureau of Industry and Security, Homeland Security Investigations, and the U.S. Customs Service, executed a search warrant at a Houston airport to install a tracking device, sources said.
  • Supply chain sources said they regularly inspect diverted shipments of AI chip servers for embedded trackers, and a third person saw images of removals from Dell and Super Micro servers.
  • Amid Chinese criticism, the White House and U.S. Congress proposed requiring U.S. chip firms to include location verification technology to prevent diversion to China.
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GizmodoGizmodo
+2 Reposted by 2 other sources
Lean Left

U.S. Allegedly Super-Charged Its Efforts to Prevent China From Getting American Chips

The AI chip arms race reportedly involves spooky surveillance tactics.

·United States
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Washington is trying to stop or severely restrict the export of high-performance chips to China, and the authorities are probably also relying on certain tracking devices.

·Frankfurt, Germany
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  • 38% of the sources are Center, 38% of the sources lean Right
38% Right

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U.S. News broke the news in New York, United States on Wednesday, August 13, 2025.
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