U.s. Authorities Embed Location Trackers in Ai Chip Shipments to Prevent Illegal Diversions to China

Washington, D.C. – August 14, 2025 – U.S. authorities have implemented a covert operation to embed location tracking devices in select shipments of advanced artificial intelligence (AI) chips, aimed at detecting and preventing illegal diversions to China, according to sources familiar with the matter. The initiative, designed to safeguard national security and protect critical technology, targets high-risk shipments containing chips manufactured by leading U.S. companies such as NVIDIA and AMD.
The trackers, embedded discreetly in shipments from companies including Dell and Super Micro, enable U.S. officials to monitor the movement of these sensitive technologies. The operation seeks to ensure compliance with export controls and prevent advanced AI chips from reaching unauthorized entities in China, where they could be used to bolster military or technological capabilities.
“This proactive measure underscores our commitment to protecting U.S. technological advancements and maintaining national security,” said a senior official from the Department of Commerce, speaking on condition of anonymity. “We are leveraging innovative tools to enforce export regulations and safeguard our interests in an increasingly competitive global landscape.”
The operation comes amid heightened tensions over the global supply chain for advanced semiconductors, which are critical for AI development, military applications, and other strategic technologies. Federal authorities have not disclosed specific details about the tracking technology or the full scope of the program, citing the sensitivity of ongoing efforts.
The Department of Commerce, in coordination with the Department of Justice and other agencies, is continuing to monitor and investigate potential violations of export controls. Companies involved in the supply chain have been notified of the need for heightened vigilance and compliance with federal regulations.
The U.S. government remains committed to fostering innovation while ensuring that advanced technologies do not fall into the wrong hands. Further updates will be provided as appropriate.