In a move to tighten control over the export of advanced technology, the U.S. government has begun embedding tracking devices in select shipments of artificial intelligence (AI) chips bound for China. This measure aims to prevent these high-tech components from being illegally diverted to destinations subject to U.S. export restrictions.
The Tracking Initiative
U.S. authorities are discreetly placing location-tracking devices inside shipments of cutting-edge chips deemed at risk of being illegally redirected to China. These trackers are designed to help U.S. law enforcement detect AI chips being sent to locations under export restrictions. This tactic is reportedly applied to specific shipments already under investigation. The trackers, varying in size, are often concealed within the packaging or even inside the servers themselves.
Scope and Implementation
The initiative targets AI servers from manufacturers like Dell and Super Micro Computer, as well as individual chips from Nvidia and Advanced Micro Devices (AMD). These chips are crucial for advancing AI capabilities, an area where China is rapidly progressing. Agencies such as the U.S. Commerce Department's Bureau of Industry and Security, Homeland Security Investigations, and the FBI are believed to be involved in this effort.
Objectives and Rationale
The primary goal is to enforce export controls and build cases against individuals or companies profiting from the evasion of U.S. trade sanctions. By monitoring the location of these chips, authorities can detect diversions to unauthorized destinations and take appropriate action. The U.S. has been seeking to limit exports of chips and other technologies to China in recent years to restrain its military modernization and AI development. Similar restrictions apply to Russia to impede its war efforts against Ukraine.
Reactions and Responses
While Super Micro declined to comment on its security practices, Nvidia stated that it does not install secret tracking devices in its products, and AMD refrained from commenting on the report. China has consistently criticized U.S. export curbs, viewing them as an attempt to suppress its technological rise.
Broader Context: U.S.-China Tech War
The U.S. has implemented export controls targeting China's ability to access and develop advanced computing and semiconductor manufacturing. These controls reflect the U.S.'s ambition to counter China's accelerating high-tech capabilities. The U.S. strategy involves limiting China's access to AI chips, restricting its design capabilities, and stifling its advanced chip manufacturing. These objectives are met by limiting access to semiconductor design and manufacturing hardware, computer-aided design (CAD) tools, and human capital.
China's Response and the Push for Self-Sufficiency
Faced with U.S. restrictions, China has intensified efforts to develop self-reliant semiconductor capabilities. The "Made in China 2025" strategy aims to reduce reliance on foreign technology. Companies like SMIC and Biren Technology are advancing RISC-V-based CPUs and alternative architectures. However, these efforts are constrained by U.S. restrictions on EUV lithography and critical materials. China's large domestic market and state-backed R&D could potentially challenge Western dominance in niche applications.
Impact and Implications
The U.S. পদক্ষেপ represents a shift from regulation to active surveillance in an attempt to curb China's AI growth. While this may deter smuggling in the short term, it could strain international trade relations and prompt retaliatory measures. Some argue that export controls may accelerate China's technological independence, harming U.S. companies.
