AI Chip Shipments from the US Hidden with Tracking Devices, Sources Assert, to Track Potential Diversions to China
In recent years, U.S. authorities have secretly placed location tracking devices in targeted shipments of advanced chips under investigation. This revelation comes amidst the tightening of export controls, with the U.S. starting to restrict the sale of advanced chips by Nvidia, AMD, and other manufacturers to China in 2022.
The trackers, which have been used to combat the illegal diversion of semiconductors, are hidden in the packaging of server shipments from manufacturers like Dell, Super Micro, Nvidia, and AMD. While the parties involved and exact locations are not known, it is believed that the trackers are typically installed along the shipping route.
Dell and Super Micro have not made any public statements about the use of tracking devices in their product shipments. Dell, in particular, has stated that it is not aware of a U.S. Government initiative to place trackers in its product shipments. Nvidia and AMD have also confirmed that they do not install secret tracking devices in their products.
Other chip resellers have been observed removing trackers from Dell and Super Micro servers. However, Super Micro has security practices and policies in place to protect its worldwide operations, partners, and customers, but declined to comment on any tracking actions by U.S. authorities.
The U.S. Department of Commerce's Bureau of Industry and Security, Homeland Security Investigations, and the Federal Bureau of Investigation may be involved in the tracking of shipments of advanced chips under investigation.
This practice of using location trackers aligns logically with government export control enforcement objectives and supply chain security initiatives. The purpose of these trackers would be to enforce export restrictions by ensuring shipments reach authorized destinations, maintain chain-of-custody, and detect or prevent unauthorized diversion.
It is important to note that while explicit data about the frequency or pervasiveness of location trackers in shipments of advanced chips is not found, such tracking aligns with the U.S. government's emphasis on improving supply chain resiliency and transparency. With the growing importance of the U.S. semiconductor sector, enhanced monitoring tools including GPS/location trackers could play a role in real-time supply chain security and regulatory compliance.
Location trackers are a decades-old investigative tool used by U.S. law enforcement agencies. They are used to build cases against people and companies who profit from violating U.S. export controls. While no comments were received from Super Micro or AMD regarding their involvement in the use of tracking devices, the use of such devices is a testament to the U.S. government's commitment to maintaining control over the export of advanced chips.
Sources described a 2024 case where a shipment of Dell servers with Nvidia chips included trackers on the shipping boxes, smaller devices hidden inside the packaging, and even within the servers themselves. The exact nature and size of these trackers vary, with some of the larger ones being roughly the size of a smartphone.
This article does not aim to pass judgment on the ethical implications of this practice, but rather to provide a factual account of the use of location trackers in advanced chip shipments by U.S. authorities. For more authoritative or detailed specifics on the use of location trackers in chip exports, consulting classified or industry-specific government export control guidelines or proprietary logistics sources might be necessary.
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