US Tracked Nvidia and AMD Chips Amid Rising Trade Tensions with China

The United States has been secretly installing tracking devices on high-tech Nvidia and AMD chips to prevent their diversion to China, according to insiders. This move is part of the US effort to curb illegal exports of artificial intelligence chips to the Chinese market.

China’s leadership has responded by urging domestic companies to avoid using American AI chips, criticizing the US policy as an attempt to slow down its growth. The US-China customs conflict continues to escalate, with traders in China now checking shipments for tracking devices.

Nvidia and AMD are significant players in the global chip market, with a large portion of demand coming from China. The companies have agreed to deduct 15% of their semiconductor sales in China to the US government as part of an agreement to obtain export licenses for the Chinese market.

The US move has raised concerns about the potential losses Nvidia and AMD could face if they exit the Chinese market. The situation highlights the ongoing tensions between the US and China over trade and security issues.

Source: https://unn.ua/en/news/us-secretly-tracks-nvidia-and-amd-chips-and-china-sees-this-as-a-national-security-threat