The US government is proposing to integrate location-tracking features in advanced semiconductor chips to prevent unapproved exports, particularly to China. This initiative, discussed at high levels in the White House, is an effort to enhance control over the distribution of crucial AI hardware, like Nvidia’s GPUs, used in machine learning. Officials are considering both software and hardware modifications to achieve better tracking capabilities.

Michael Kratsios, a senior White House official, indicated that while the plan is in preliminary stages, it could significantly impact how semiconductor companies like Nvidia and AMD manage their supply chains. Though no direct discussions have taken place with these leading chip manufacturers, the focus is clear: ensure that US technology meant for AI development remains secure and doesn’t bolster Chinese advancements inadvertently.

This move aligns with legislative efforts in Congress that advocate for compulsory location verification mechanisms in exported chips to prevent diversions to unauthorized destinations post-shipment. Companies will be required to report any anomalies to the Bureau of Industry and Security if components end up where they shouldn’t.

The push towards stringent export controls aligns with broader US efforts to maintain its technological edge over China, amid reports that high-value Nvidia GPUs have been surfacing in the Chinese market against existing export restrictions.