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US law enforcement agencies have reportedly been embedding location tracking devices in select shipments of high-performance AI chips as part of ongoing efforts to enforce export controls, particularly those targeting unauthorized transfers to China. The practice, reported on by Reuters, is intended to monitor the movement of specific hardware shipments believed to be at risk of diversion.
According to individuals with direct knowledge of the process who spoke to Reuters, these trackers are being used in shipments that include servers containing advanced semiconductors from companies such as Nvidia and AMD. The servers are often produced by manufacturers like Dell and Super Micro and are subject to export restrictions introduced by the US in 2022.
The tracking devices, which range in size and visibility, have reportedly been hidden both within shipping containers and embedded directly inside server units. In at least one case from 2024, sources say both large and small trackers were discovered.
These tactics are not new in principle. US agencies have long used similar tools in the monitoring of restricted exports. However, their application to chip shipments marks an escalation in how export controls are being enforced amid rising concerns about the use of US-made technology in adversarial military or surveillance programs.
Several individuals involved in the supply chain confirmed awareness of the tracking efforts but noted that details about who installs the trackers and at what stage in the supply chain remain unclear. Some have even reported seeing videos of trackers being removed by resellers from packaged servers.
The US continues to tighten controls on semiconductor exports not only to China, but also to Russia, aiming to prevent their use in military applications. According to Reuters, Proposals are currently being discussed that would mandate location tracking technology in sensitive chip exports as a standard compliance requirement.
