US authorities have secretly placed location tracking devices in specific shipments of advanced AI chips. According to sources, these shipments are at high risk of ending up in China in violation of export rules.
This was reported by Reuters. The use of this method shows how far the United States is willing to go to enforce export restrictions on semiconductors to China. According to those involved, the trackers help gather evidence against individuals and companies that benefit from circumventing export laws.
The use of trackers is not a new technique. US law enforcement agencies have been using similar methods for decades to track products subject to export restrictions, such as aircraft parts. In recent years, they have also been used to combat the illegal trade in semiconductors.
Sources within the AI server supply chain say they are aware of the use of trackers in deliveries from Dell and Super Micro, among others. These systems often contain chips from Nvidia and AMD. According to them, the tracking devices are usually hidden in the packaging. It is unclear who places them or at what point in the transport chain this happens.
Large and small trackers
How often the method is used is unknown, as is when the authorities started using it. Restrictions on the export of advanced chips to China were introduced in 2022. In one case in 2024, a shipment of Dell servers with Nvidia chips was found to contain both large trackers on the boxes and smaller, more subtle devices in the packaging and in the servers themselves. The larger ones are said to be about the size of a smartphone.
The US Department of Commerce’s Bureau of Industry and Security is usually involved in these investigations. In some cases, Homeland Security Investigations and the FBI also cooperate. These agencies declined to comment, while the Department of Commerce did not respond to questions. The Chinese Ministry of Foreign Affairs said it was not aware of the matter.
Manufacturers are keeping quiet on the subject. Super Micro stated that it does not share details about security practices. Dell said it had no knowledge of a US government program that places trackers in product shipments. Nvidia stated that it does not install secret tracking devices in products. AMD did not respond.