Hidden US chip trackers target evaders of China ship-outs prohibition
(MENAFN) US authorities are secretly embedding tracking devices in chip shipments considered at high risk of being sent to China in violation of export restrictions, Reuters reported, citing anonymous sources.
Since 2022, the US has restricted sales of advanced semiconductors to China over national security concerns. Beijing has criticized the measures as a “malicious blockade” and accused Washington of politicizing technology and trade.
The trackers are intended to help build legal cases against companies or individuals circumventing the bans. Devices may be hidden in packaging or inside the items themselves, including servers. The US Commerce Department’s Bureau of Industry and Security typically leads such operations, with potential involvement from the FBI and Homeland Security Investigations.
Following a trade deal with China, President Donald Trump approved export licenses for Nvidia and AMD, allowing limited chip sales in exchange for a 15% share of revenue for the US government. China has advised domestic firms not to use certain imported chips, like Nvidia’s H20, for sensitive projects due to potential information leaks.
Additionally, the US and China agreed to extend a tariff truce by 90 days, avoiding the reinstatement of high tariffs. Earlier in the year, tariffs had spiked to 145% in the US and 125% in China, but tensions eased in June after a London trade framework allowed for some relaxation of export controls and restrictions on rare-earth minerals critical to microelectronics.
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