In a bold move to protect its AI technology, the United States has secretly installed location trackers in chip shipments suspected of being illegally diverted to China.
According to reports, these tracking devices have been hidden in packaging and servers containing Nvidia and AMD chips, with shipments handled by major companies like Dell and Super Micro.
The covert operation is part of America’s wider push to enforce strict export controls on advanced AI chips, a sector that has become central to global competition in artificial intelligence and defense technology.
Who Is Behind the Tracking Devices?
Several U.S. government agencies are involved in this program:
- Bureau of Industry and Security (BIS) – enforces export rules.
- Homeland Security Investigations (HSI) – monitors supply chains.
- Federal Bureau of Investigation (FBI) – investigates smuggling cases.
Sources confirm that the trackers are not installed on every shipment, but only on targeted orders under investigation.
How the Trackers Work
- Devices are sometimes as large as a smartphone.
- Installed inside chip packaging or server hardware.
- Used to trace the shipment path and gather legal evidence if diversions occur.
This method has been used by U.S. authorities in the past for sensitive items like aircraft parts, but its application in AI chips is unprecedented.
Industry Reactions
- Nvidia denied that its products contain any trackers.
- Dell said it was not aware of the initiative.
- Super Micro refused to comment, citing security policies.
Meanwhile, resellers in Asia have begun inspecting shipments for suspicious hardware.
China’s Angry Response
Chinese state media reacted sharply, calling the U.S. a “surveillance empire” and warning domestic firms to be cautious when buying Nvidia’s H20 chips.
China accused the U.S. of turning chip exports into a “spying game”, further fueling the technology conflict between the two powers.
Future of Chip Tracking
The White House is reportedly exploring broader measures, such as:
- Embedding geolocation features directly into AI chips.
- Adding software-based location verification.
However, experts warn this could raise cybersecurity risks, higher costs, and diplomatic backlash.
Why This Matters
| Impact Area | Significance |
|---|---|
| National Security | Prevents China from accessing restricted AI chips. |
| Trade War | Escalates U.S.-China technology tensions. |
| Industry Trust | Raises fears among global chip buyers. |
| Future Policy | Could lead to mandatory tracking in all AI chip exports. |
Conclusion
The move to secretly install location trackers shows how serious Washington is about protecting its AI advantage. As the US installs trackers in chip shipments, the global chip war is shifting from trade restrictions to active surveillance, setting the stage for deeper tensions with China.
