The US government has started secretly embedding location tracking devices in shipments of advanced AI chips and servers to prevent their illegal diversion to China. This move is part of the US's efforts to enforce export restrictions imposed on China in 2022, aimed at limiting the country's access to cutting-edge American technology, particularly in the field of artificial intelligence.
The trackers are hidden inside the packaging or even within the servers themselves, allowing law enforcement to trace goods restricted under US export laws and build cases against violators. The tracking devices are used in high-risk shipments under investigation, specifically targeting products from major manufacturers like Nvidia, AMD, Dell, and Super Micro.
The Department of Commerce's Bureau of Industry and Security, Homeland Security Investigations, and the FBI are reportedly involved in these operations. The devices can be installed with administrative approval or under a judicial warrant, enhancing the legality of evidence collected.
China has criticized the US approach, framing it as an attempt to suppress its technological advancement and raising concerns about "backdoors" in chips. The US move may lead companies to implement stricter internal compliance measures, while China could develop countermeasures or local alternatives, potentially heightening tensions in the global semiconductor supply chain.
The US has been tightening export controls on advanced semiconductors, including those used in AI applications, to limit China's military modernization and access to AI technology. This development highlights the ongoing tech trade tensions between the US and China, with significant implications for the global AI and semiconductor industries.
