U.S. authorities have reportedly embedded secret tracking devices in shipments of advanced AI chips, including those from Nvidia and AMD, to monitor and prevent illegal exports to China. This initiative aims to thwart potential diversions and smuggling activities amid ongoing tensions between the two countries. Reports indicate that tracking devices were discreetly placed within the packaging and servers of high-risk shipments, particularly those from companies like Dell and Super Micro. The move has raised concerns in China, where officials view these covert surveillance tactics as a significant national security threat. As part of broader export control measures, the U.S. is exploring further methods to monitor the flow of advanced technology, including the potential use of software or hardware tracking solutions.