Sources with direct knowledge told Reuters the tactic is used only on high-risk loads under investigation, but it shows just how far Washington will go to police its export bans.
The trackers are planted in select consignments from kit makers like the Grey Box Shifter Dell and Super Micro, often containing Nvidia and AMD silicon. In some cases the devices are stuck in shipping boxes, slipped into packaging or hidden inside the servers themselves. One reseller claims the larger trackers are about the size of a smartphone, while smaller ones can be tucked away unnoticed.
This cloak-and-dagger approach is not new. US agencies have been wiring up export-controlled shipments since the 1980s, from aircraft parts to semiconductors. Homeland Security Investigations, the FBI and the Commerce Department’s Bureau of Industry and Security are all said to be in on the act.
In one 2024 case, a load of Dell servers with Nvidia chips came bristling with visible and discreet trackers. Other China-based resellers say they inspect diverted shipments for spy tags before passing them along, having learned the hard way about Uncle Sam’s toys.
Washington has been squeezing Beijing’s access to advanced silicon since 2022 to slow its military modernisation. That includes bans on certain Nvidia and AMD chips and proposals to force all US-made AI processors to carry built-in location verification tech. Beijing has complained loudly, accusing the US of trying to kneecap its tech sector.
China’s cyberspace regulator recently hauled Nvidia in to grumble about supposed “backdoors” in its gear, a claim the company strongly denies. For its part, Nvidia insists it does not install tracking devices in its products. Dell says it is “not aware” of any such government programme, while Super Micro refuses to discuss its security policies. AMD has gone quiet on the subject.
Court filings in a recent Justice Department case against two Chinese nationals accused of smuggling tens of millions of dollars’ worth of AI chips show just how common it is. In one exchange, a co-conspirator warned an accomplice to check Quanta H200 servers for trackers and to “look carefully” because, in their words, “who knows what they will do.”
