The White House is studying ways to embed location-tracking features in advanced semiconductors in order to monitor where exported artificial-intelligence chips ultimately end up, Office of Science and Technology Policy Director Michael Kratsios said. Officials are evaluating both software and hardware solutions that would let regulators verify whether high-performance processors from suppliers such as Nvidia and AMD are diverted to restricted destinations, notably China. The idea is a centerpiece of the Trump administration’s AI Action Plan, published in July, and builds on bills introduced in Congress this year that would oblige exporters to incorporate a “location-verification mechanism” in certain cutting-edge chips. Kratsios said the government has not yet held direct talks with the chipmakers but intends to work with industry on technical standards and compliance reporting. Washington’s focus on traceable hardware comes amid evidence that export curbs are being circumvented. Industry estimates place the value of high-end Nvidia GPUs that have reached China via the black market at about $1 billion despite successive rounds of U.S. export restrictions. On 5 August, U.S. prosecutors charged several Chinese nationals with breaching those rules by attempting to ship Nvidia accelerators overseas. Beyond enforcement, the administration is courting Asian allies with what Kratsios called “customized” AI technology partnerships, aiming to solidify a supply-chain coalition that limits Beijing’s access to frontier compute power while fostering alternative markets for U.S. chipmakers.