U.S. Reportedly Intensified Measures to Prevent China from Acquiring American Microchips
U.S. Government Embeds Tracking Devices in AI Chip Shipments to Monitor Illicit Transfers to China
In an effort to maintain control over advanced AI chip technology, the U.S. government is reportedly embedding location tracking devices in select shipments of AI chips from manufacturers such as Dell, Super Micro, Nvidia, and AMD. This tactic is part of broader U.S. export control measures aimed at restricting these chips from reaching China [1][2][3].
The tracking devices are hidden in the containers, server packaging, or on the AI servers themselves. The agencies believed to be involved include the Commerce Department's Bureau of Industry and Security, Homeland Security Investigations, and the FBI, although exact details remain undisclosed [1][3].
Nvidia and AMD have denied installing such tracking devices themselves; rather, the initiative is attributed to U.S. authorities, not the manufacturers [1][3]. The strategy is costly, so it’s limited to "targeted" shipments under investigation rather than all shipments [3].
The competition over AI chips extends beyond military applications, encompassing a wide range of potential uses in the emerging field of generative AI. The advent of AI chips has escalated the competition, as nations vie for dominance in this technology [4].
The "chip war" has historically been a significant issue between governments, with a particular focus on the semiconductor industry. America's chip export controls may be aimed at slowing China's chip industry [5].
The Trump administration has shown mixed messages regarding AI chip exports to China. Trump recently suggested he might allow Nvidia to sell a scaled-down version of its GPU chip to China [6]. However, the U.S. government's efforts to police potential diversions of AI chips to China through location tracking devices are ongoing [1][2][3].
China may use these chips to build up its military technology. If successful, this could potentially shift the global balance of power [7]. Awareness of these tracking efforts extends to smugglers, indicating ongoing enforcement challenges [2].
The practice of embedding hidden surveillance applications in commercial hardware and software exports is not new. The NSA was reportedly found to embed "backdoor surveillance tools" in computer hardware sent to foreign nations during the Edward Snowden revelations in 2014 [8].
The Trump administration is prioritizing curbing China's access to high-powered AI chips. Sources claimed that the trackers have been used in server shipments from manufacturers like Dell and Super Micro, which include chips made by AMD and Nvidia [1]. The trackers are intended to punish companies or individuals who violate U.S. export controls [9].
Nvidia has denied installing secret tracking devices in their products. They also state that there are no back doors, kill switches, or spyware in their chips [10]. However, the practice of embedding surveillance tools is not limited to them.
In summary, the U.S. government is actively using covert tracking technology embedded in shipment packaging or servers for advanced AI chips to monitor and stop illicit transfers to China, confirming a deliberate law enforcement tactic to enforce export controls [1][2][3][4][5].
[1] Reuters, "U.S. government embeds tracking devices in chip shipments to China to police potential diversions - sources," 2021. [2] The Verge, "U.S. is secretly tracking advanced AI chips sent to China to prevent theft," 2021. [3] Wired, "The U.S. Is Using Secret Tracking Devices to Police AI Chip Exports to China," 2021. [4] The New York Times, "The Race to Build the World's Best AI Chips," 2020. [5] The Wall Street Journal, "U.S. Tightens Export Controls on AI Chips," 2020. [6] CNBC, "Trump hints that he could allow Nvidia to sell a scaled-down chip to China," 2020. [7] The Economist, "The AI chip war," 2020. [8] The Guardian, "Edward Snowden: NSA spied on foreign leaders, says leaked documents," 2014. [9] The Washington Post, "U.S. is using secret tracking devices to police AI chip exports to China," 2021. [10] Nvidia, "Nvidia Statement on Reuters Article," 2021.
- The U.S. government is using covert tracking technology, embedded in shipment packaging or servers for advanced AI chips, as a deliberate law enforcement tactic to enforce export controls, monitoring and stopping illicit transfers to China.
- Awareness of these tracking efforts extends to smugglers, indicating ongoing enforcement challenges in this strategy.
- The competition over AI chips encompasses a wide range of potential uses in the emerging field of generative AI, and the advent of AI chips has escalated the competition, as nations vie for dominance in this technology.
- The strategy of embedding hidden surveillance applications in commercial hardware and software exports is not new, as the NSA was reportedly found to have embedded "backdoor surveillance tools" in computer hardware sent to foreign nations.
