09:43 AM EDT, 08/13/2025 (MT Newswires) -- (Adds Nvidia's response in last paragraph.)

US authorities have been placing location tracking devices in select chip shipments to detect illegal diversion to China, Reuters reported Wednesday, citing sources with direct knowledge of the law enforcement tactic.

According to the report, the measure targets specific shipments that are considered high risk.

The unnamed sources, who are involved in the AI server supply chain, confirmed their knowledge of the use of trackers in shipments from Dell (DELL) and Super Micro (SMCI), which include chips from Nvidia ( NVDA ) and AMD (AMD), Reuters said.

Nvidia ( NVDA ) declined to comment, while Dell, Super Micro, and AMD did not immediately respond to MTNewswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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