US Deploys Covert Tracking in AI Chip Exports to Thwart Diversion to China

The United States has begun embedding location trackers in select shipments of advanced AI chips, a clandestine tactic aimed at preventing illegal diversions to China. This measure, recently uncovered, forms part of Washington's aggressive enforcement strategy following the 2022 export restrictions on cutting-edge semiconductors. The surveillance targets specific shipments under investigation, including servers from Dell Technologies and Super Micro equipped with Nvidia and AMD chips.

Authorities leverage the trackers to verify whether shipments reach their declared destinations or are rerouted to prohibited locations like mainland China. While similar tracking technology has long been used in cases involving stolen goods and narcotics, its application to AI chips marks a significant escalation in tech trade controls.

Legislative efforts are underway to mandate location verification technology in all chips destined for export, drawing criticism from Beijing. The MOVE underscores the geopolitical tensions surrounding semiconductor dominance and military-adjacent technologies.