U.S. law-enforcement agencies have been quietly embedding location-tracking devices in select shipments of advanced AI chips and servers to detect illegal diversions to China and other destinations under U.S. export restrictions, according to people with direct knowledge of the tactic. Trackers have been discovered in consignments from Dell and Super Micro that contained processors made by Nvidia and AMD, the sources said. The devices, sometimes hidden in packaging or inside servers, are deployed only on shipments considered high risk and are intended to generate evidence for potential criminal prosecutions. The operation highlights Washington’s stepped-up enforcement of semiconductor export controls introduced in 2022 to curb China’s access to cutting-edge U.S. technology. The Commerce Department’s Bureau of Industry and Security typically leads the investigations, with Homeland Security Investigations and the FBI also involved. Dell said it was unaware of any government initiative to install trackers in its products. Super Micro said it does not disclose security practices, while Nvidia declined to comment and AMD did not respond. Beijing has repeatedly criticised U.S. chip curbs and proposals requiring location verification technology in future chip exports.