US installs trackers on AI chip shipments to track their entry into China
American law enforcement is using hidden tracking devices in selected batches of servers with AI chips to prevent their illegal export to China.
American law enforcement is using hidden tracking devices in selected batches of servers with AI chips to prevent their illegal export to China.
According to Reuters, the US is placing trackers in shipments of high-performance servers containing Nvidia and AMD chips to detect illegal shipments to countries with export restrictions. The devices can be as large as a smartphone, or as tiny as a smartphone, hidden in packaging or even inside the equipment.
The operations involve the US Department of Commerce’s Bureau of Industry and Security, the Department of Homeland Security’s Bureau of Investigation, and the FBI. It is known that in 2024, one batch of Dell servers with Nvidia chips had both external trackers on the boxes and invisible ones inside. Some Chinese server and chip resellers admit that they carefully check shipments for the presence of such devices, understanding the risks of criminal liability.
The US imposed restrictions on the sale of advanced AI chips to China and Russia in 2022, arguing that it was to deter rivals' military programs. In January 2025, it became known about large-scale schemes for smuggling chips to China through Malaysia, Singapore, and the UAE.
Tracking technology has been used by American investigators since the 1980s, when it was used to combat the illegal export of aircraft parts. Sometimes the trackers are installed with the permission of the company, if it is not the subject of an investigation, but in some cases it is done without its knowledge.
Export restrictions on AI chips are part of a broader US strategy to protect its technological advantage and limit China’s access to critical technologies that could be used for military purposes.
We also previously wrote about how the famous American corporation Intel warned that it may stop developing its next-generation chip, known as 14A. This will be a heavy blow to the company, which is already going through difficult times.
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