U.S. uses covert trackers in AI chip shipments to prevent China diversion

U.S. authorities have deployed covert tracking devices in select shipments of advanced computer chips to monitor whether they end up in China, according to a recent report[1]. The initiative is part of a broader strategy to enforce U.S. export controls and build legal cases against individuals or entities involved in smuggling high-tech goods in violation of trade restrictions. The tracking devices, which range in size from smartphone-like units to smaller versions, are typically hidden within the packaging of the shipments, though the exact methods and personnel responsible for their installation remain unclear[1].

The targeted shipments reportedly include servers from Dell and Super Micro, containing chips produced by Nvidia and AMD. These components are particularly sensitive due to their potential use in advancing artificial intelligence capabilities, a sector where China has been rapidly catching up. The U.S. has imposed export restrictions on AI-related hardware since 2022, citing national security concerns[1]. The use of tracking devices in semiconductor shipments is a relatively new application of a long-standing law enforcement practice—placing surveillance technology in goods to monitor illegal movement. This move signals a growing urgency in U.S. efforts to safeguard its technological edge amid heightened geopolitical competition.

The involvement of multiple federal agencies, including the Departments of Commerce and Homeland Security, as well as the FBI, underscores the seriousness with which the U.S. is treating this issue. However, the role of the tech companies themselves remains ambiguous. While some sources suggest that they may be unaware of the trackers, others imply that cooperation could be part of the process[1]. This lack of clarity raises questions about the extent of corporate knowledge and participation in the monitoring operations.

From a strategic perspective, the U.S. is clearly taking a more aggressive approach in preventing the diversion of sensitive technologies to China. This move aligns with broader efforts to counter China’s growing influence in the global AI landscape. The covert tracking of shipments represents a shift from purely regulatory measures to active surveillance and enforcement. While this may help deter smuggling in the short term, it could also strain international trade relations and prompt retaliatory measures from other countries[1].

Source:

[1] U.S. secretly tracked AI shipments to see if they ended up in China

https://fortune.com/2025/08/14/u-s-secretly-tracked-ai-shipments-to-see-if-they-ended-up-in-china/