Latest news with #SuperMicro
India.com
2 days ago
- Business
- India.com
China accuses US of sending chip with spying location trackers
China accuses US of sending chip with spying location trackers | Know the full controversy There has been a long-standing dispute between the US and China over AI chips. In the latest development, China has accused US of trying to monitor by installing location trackers in advanced AI chips. According to a report by Tom's Hardware, the US has installed trackers in shipments of chips that are at risk of being illegally sent to China. These trackers have not been installed in every shipment, but only in 'high risk' shipments. These trackers have been hidden in shipping containers, server packaging and server racks. Some trackers are as big as a smartphone and have been found in devices from companies like Dell and Super Micro. Has US installed location trackers? According to a report, the US has installed secret location trackers in consignments of certain chips. These chips are made with advanced technology and are banned from being sent to China. The US believes that some people may smuggle these chips to China. Therefore, only those shipments that are suspected have been targeted. These trackers have previously been used to monitor goods such as aircraft parts. Is US running the world's largest intelligence network? China has described the US as the country running the world's largest 'intelligence network'. They say that if US chips are considered a 'Trojan horse' used for surveillance, then customers will look for alternatives to these chips. Let us tell you that the US also suspects the presence of spying equipment in goods coming from China. In 2022, the US banned the sale of telecom devices of many companies including the Chinese company HUAWEI, citing 'national security'. What is the warning given to Chinese companies? Chinese officials have advised local companies not to use NVIDIA's H20 chips. Especially these chips are being asked not to be used in government and national security related works. According to a Bloomberg report, China has sent an official notice to government and private companies to stop using this chip.
Time of India
4 days ago
- Business
- Time of India
US embeds trackers in AI chip shipments to catch diversions to China
By Fanny Potkin, Karen Freifeld and Jun Yuan Yong SINGAPORE/NEW YORK: U.S. authorities have secretly placed location tracking devices in targeted shipments of advanced chips they see as being at high risk of illegal diversion to China , according to two people with direct knowledge of the previously unreported law enforcement tactic. The measures aim to detect AI chips being diverted to destinations which are under U.S. export restrictions, and apply only to select shipments under investigation, the people said. They show the lengths to which the U.S. has gone to enforce its chip export restrictions on China, even as the Trump administration has sought to relax some curbs on Chinese access to advanced American semiconductors. The trackers can help build cases against people and companies who profit from violating U.S. export controls, said the people who declined to be named because of the sensitivity of the issue. Location trackers are a decades-old investigative tool used by U.S. law enforcement agencies to track products subject to export restrictions, such as airplane parts. They have been used to combat the illegal diversion of semiconductors in recent years, one source said. Five other people actively involved in the AI server supply chain say they are aware of the use of the trackers in shipments of servers from manufacturers such as Dell and Super Micro , which include chips from Nvidia and AMD . Those people said the trackers are typically hidden in the packaging of the server shipments. They did not know which parties were involved in installing them and where along the shipping route they were put in. Reuters was not able to determine how often the trackers have been used in chip related investigations or when U.S. authorities started using them to investigate chip smuggling. The U.S. started restricting the sale of advanced chips by Nvidia, AMD and other manufacturers to China in 2022. In one 2024 case described by two of the people involved in the server supply chain, a shipment of Dell servers with Nvidia chips included both large trackers on the shipping boxes and smaller, more discreet devices hidden inside the packaging - and even within the servers themselves. A third person said they had seen images and videos of trackers being removed by other chip resellers from Dell and Super Micro servers. The person said some of the larger trackers were roughly the size of a smartphone. The U.S. Department of Commerce's Bureau of Industry and Security, which oversees export controls and enforcement, is typically involved, and Homeland Security Investigations and the Federal Bureau of Investigation, may take part too, said the sources. The HSI and FBI both declined to comment. The Commerce Department did not respond to requests for comment. The Chinese foreign ministry did not have immediate comment. Super Micro said in a statement that it does not disclose its "security practices and policies in place to protect our worldwide operations, partners, and customers." It declined to comment on any tracking actions by U.S. authorities. Dell said it is "not aware of a U.S. Government initiative to place trackers in its product shipments." Nvidia declined to comment, while AMD did not answer a request for comment. CHIP RESTRICTIONS The United States, which dominates the global AI chip supply chain, has sought to limit exports of chips and other technology to China in recent years to restrain its military modernization. It has also put restrictions on the sale of chips to Russia to undercut war efforts against Ukraine. The White House and both houses of Congress have proposed requiring U.S. chip firms to include location verification technology with their chips to prevent them from being diverted to countries where U.S. export regulations restrict sales. China has slammed the U.S. exports curbs as part of a campaign to suppress its rise and criticized the location tracking proposal. Last month, the country's powerful cyberspace regulator summoned Nvidia to a meeting to express its concerns over the risks of its chips containing "backdoors" that would allow remote access or control, which the company has strongly denied. In January, Reuters reported the U.S. had traced organized AI chip smuggling to China via countries such as Malaysia, Singapore, and the UAE - but it is unclear if tracking devices were involved. The use of trackers by U.S. law enforcement goes back decades. In 1985, Hughes Aircraft shipped equipment subject to U.S. export controls, according to a court decision reviewed by Reuters. Executing a search warrant, the U.S. Customs Service intercepted the crate at a Houston airport and installed a tracking device, the decision noted. U.S. export enforcement agents sometimes install trackers after getting administrative approval. Other times they get a judge to issue a warrant authorizing use of the device, one source said. With a warrant, it is easier to use the information as evidence in a criminal case. A company may be told about the tracker, if they are not a subject of the investigation, and may consent to the government's installation of the trackers, the source added. But the devices can also be installed without their knowledge. People involved in diverting export-controlled chip and server shipments to China said they were aware of the devices. Two of the supply chain sources, who are China-based resellers of export-controlled chips, said they regularly took care to inspect diverted shipments of AI chip servers for the trackers due to the risks of the devices being embedded. An affidavit filed with a U.S Department of Justice complaint regarding the arrests of two Chinese nationals charged with illegally shipping tens of millions of dollars' worth of AI chips to China earlier this month describes one co-conspirator instructing another to check for trackers on Quanta H200 servers, which contain Nvidia chips. It said the English language text was sent by a co-conspirator, whose name was redacted, to one of the defendants, Yang Shiwei. "Pay attention to see if there is a tracker on it, you must look for it carefully," said the person, who went on to call the Trump administration by an obscenity. "Who knows what they will do."
Mint
4 days ago
- Business
- Mint
US installs location trackers in advanced chip shipments to prevent illegal diversion to China: Report
US authorities have secretly installed location tracking devices in certain shipments of advanced chips they consider to be at high risk of being illegally diverted to China, news agency Reuters reported, citing people aware of the development. The report said the measures aim to identify AI chips that are being diverted to destinations subject to export restrictions by the US and apply to only specific shipments under investigation. The trackers can assist in building cases against individuals and companies that profit from breaching US export laws, the report said. Location trackers are investigative tools used for decades by US law enforcement to monitor products subject to export restrictions, such as airplane parts. Recently, they have been used to fight the illegal diversion of semiconductors. The people involved in the AI server supply chain said they know about the trackers in shipments of servers from manufacturers such as Dell and Super Micro, which include chips from Nvidia and AMD. Notably, those involved in redirecting export-controlled chip and server shipments to China confirmed they were aware of the devices. These people said the trackers are mostly hidden in the packaging of the server shipments. Livemint could not independently verify the report. In a 2024 case, a shipment of Dell servers with Nvidia chips contained both large trackers on the boxes and smaller devices hidden inside the packaging and within the servers. Additionally, a person also claimed to have seen images and videos showing trackers being removed by other chip resellers from Dell and Super Micro servers. The person mentioned that some of the larger trackers were approximately the size of a smartphone. Meanwhile, the Chinese Foreign Ministry stated they were not aware of the issue. Dell noted that they are 'not aware of a U.S. Government initiative to place trackers in its product shipments.' Nvidia informed, 'We don't install secret tracking devices in our products.' The US, a dominant leader of the global AI chip supply chain, has aimed to restrict exports of chips and related technology to China in recent years to curb its military modernisation. Additionally, it has limited chip sales to Russia to weaken its war efforts against Ukraine. The White House and both chambers of Congress have proposed that US chip companies incorporate location verification technology into their products to ensure they are not diverted to countries where US export restrictions apply. China has criticised the US export restrictions as part of a campaign to curb its rise and condemned the location-tracking proposal. Last month, China's cyberspace regulator summoned Nvidia to voice concerns over the risks of its chips containing "backdoors" that could allow remote access or control, which the company has strongly denied.
Yahoo
5 days ago
- Business
- Yahoo
U.S. Reportedly Uses Trackers In AI Chip Shipments
Nvidia (NASDAQ:NVDA) is back in the spotlight after a Reuters report said U.S. authorities have secretly placed location trackers in select AI server shipments to catch illegal diversions to China. The devices apply only to shipments under investigation and are meant to help build cases against people and companies that break export rules. People in the supply chain say they have seen trackers on some Dell Technologies (NYSE:DELL) and Super Micro (NASDAQ:SMCI) servers carrying Nvidia and AMD (NASDAQ:AMD) chips, often tucked into packaging and sometimes inside the servers. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Nvidia declined to comment. Super Micro said it does not disclose security practices. Dell said it is not aware of a government initiative to place trackers in its shipments. Authorities can use administrative approval or a judge's warrant, and companies may consent if they are not targets. How often this happens is unclear. Two China based resellers said they now check diverted shipments for trackers. In a 2024 example, a Dell server shipment with Nvidia chips reportedly had large devices about the size of a smartphone and smaller discreet trackers, and a DOJ affidavit described instructions to inspect Quanta H200 servers. covert tracking raises the enforcement bar and could slow gray market tighter export policing and watch for follow on cases and routing changes. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New Straits Times
5 days ago
- Business
- New Straits Times
US secretly embeds trackers in AI chip shipments to stop diversions to China
SINGAPORE: US authorities have secretly placed location tracking devices in targeted shipments of advanced chips they see as being at high risk of illegal diversion to China, according to two people with direct knowledge of the previously unreported law enforcement tactic. The measures aim to detect AI chips being diverted to destinations which are under US export restrictions, and apply only to select shipments under investigation, the people said. They show the lengths to which the US has gone to enforce its chip export restrictions on China, even as the Trump administration has sought to relax some curbs on Chinese access to advanced American semiconductors. The trackers can help build cases against people and companies who profit from violating US export controls, said the people, who declined to be named because of the sensitivity of the issue. Location trackers are a decades-old investigative tool used by US law enforcement agencies to track products subject to export restrictions, such as airplane parts. They have been used to combat the illegal diversion of semiconductors in recent years, one source said. Five other people actively involved in the AI server supply chain say they are aware of the use of the trackers in shipments of servers from manufacturers such as Dell and Super Micro, which include chips from Nvidia and AMD . Those people said the trackers are typically hidden in the packaging of the server shipments. They did not know which parties were involved in installing them and where along the shipping route they were inserted. Reuters was not able to determine how often the trackers have been used in chip-related investigations or when US authorities started using them to investigate chip smuggling. The US started restricting the sale of advanced chips by Nvidia, AMD and other manufacturers to China in 2022. In one 2024 case described by two of the people involved in the server supply chain, a shipment of Dell servers with Nvidia chips included both large trackers on the shipping boxes and smaller, more discreet devices hidden inside the packaging — and even within the servers themselves. A third person said they had seen images and videos of trackers being removed by other chip resellers from Dell and Super Micro servers. The person said some of the larger trackers were roughly the size of a smartphone. The US Department of Commerce's Bureau of Industry and Security, which oversees export controls and enforcement, is typically involved, and Homeland Security Investigations and the Federal Bureau of Investigation may take part too, said the sources. The HSI and FBI both declined to comment. The Commerce Department did not respond to requests for comment. The Chinese foreign ministry said it was not aware of the matter. Super Micro said in a statement that it does not disclose its "security practices and policies in place to protect our worldwide operations, partners, and customers." It declined to comment on any tracking actions by US authorities. Dell said it is "not aware of a US Government initiative to place trackers in its product shipments." Nvidia said, "We don't install secret tracking devices in our products." AMD did not answer a request for comment. CHIP RESTRICTIONS The United States, which dominates the global AI chip supply chain, has sought to limit exports of chips and other technology to China in recent years to restrain its military modernisation. It has also restricted the sale of chips to Russia to undercut war efforts against Ukraine. The White House and both houses of Congress have proposed requiring US chip firms to include location verification technology with their chips to prevent them from being diverted to countries where US export regulations restrict sales. China has slammed the US exports curbs as part of a campaign to suppress its rise and criticised the location tracking proposal. Last month, China's powerful cyberspace regulator summoned Nvidia to a meeting to express its concerns over the risks of its chips containing "backdoors" that would allow remote access or control, which the company has strongly denied. In January, Reuters reported the US had traced organised AI chip smuggling to China via countries such as Malaysia, Singapore and the UAE — but it is unclear if tracking devices were involved. The use of trackers by US law enforcement goes back decades. In 1985, Hughes Aircraft shipped equipment subject to US export controls, according to a court decision reviewed by Reuters. Executing a search warrant, the US Customs Service intercepted the crate at a Houston airport and installed a tracking device, the decision noted. US export enforcement agents sometimes install trackers after getting administrative approval. Other times they get a judge to issue a warrant authorising use of the device, one source said. With a warrant, it is easier to use the information as evidence in a criminal case. A company may be told about the tracker, if it is not a subject of the investigation, and may consent to the government's installation of the trackers, the source added. But the devices can be installed without their knowledge. People involved in diverting export-controlled chip and server shipments to China said they were aware of the devices. Two of the supply chain sources, who are China-based resellers of export-controlled chips, said they regularly took care to inspect diverted shipments of AI chip servers for the trackers due to the risks of the devices being embedded. An affidavit filed with a US Department of Justice complaint regarding the arrests of two Chinese nationals charged with illegally shipping tens of millions of dollars' worth of AI chips to China earlier this month describes one co-conspirator instructing another to check for trackers on Quanta H200 servers, which contain Nvidia chips. It said the English-language text was sent by a co-conspirator, whose name was redacted, to one of the defendants, Yang Shiwei. "Pay attention to see if there is a tracker on it, you must look for it carefully," said the person, who went on to call the Trump administration by an obscenity. "Who knows what they will do." --REUTERS
