U.S. authorities embed concealed location trackers in selected shipments of advanced AI servers and chips to detect illegal diversions to China and other restricted destinations. Trackers are hidden in packaging or inside servers from manufacturers such as Dell and Super Micro, often containing Nvidia and AMD chips. The Department of Commerce's Bureau of Industry and Security leads enforcement, supported by Homeland Security Investigations and the FBI. Trackers serve to build legal cases against violators. Use of trackers in semiconductor enforcement began after 2022 export curbs. Warrant-backed installations enable criminal evidence; some companies may be informed or consent.
U.S. authorities have secretly embedded location tracking devices in targeted shipments of advanced AI chips considered at high risk of being illegally diverted to China, according to multiple sources familiar with the matter, a report from Reuters. The measure applies only to select shipments under investigation and aims to detect diversions to destinations restricted under U.S. export regulations. It underscores the aggressive steps taken to enforce semiconductor export controls, even as political debates continue over easing certain restrictions.
The trackers are typically hidden within the packaging of AI servers from manufacturers such as Dell and Super Micro, which often contain Nvidia and AMD chips. In some cases, devices have been discreetly embedded inside the servers themselves. The U.S. Department of Commerce's Bureau of Industry and Security leads these enforcement efforts, often with support from Homeland Security Investigations and the Federal Bureau of Investigation.
Location trackers have been used by U.S. law enforcement for decades in monitoring goods subject to export restrictions, including aircraft components. Their deployment in semiconductor enforcement began in recent years, following the 2022 introduction of AI chip sales restrictions to China. In one 2024 case, shipments of Dell servers containing Nvidia chips carried both large trackers, roughly the size of a smartphone, and smaller concealed devices. Some resellers in the supply chain report routinely inspecting diverted shipments for such trackers to avoid detection.
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