Nvidia privately confirmed it could track chips to fight smuggling, even as industry publicly questioned feasibility

Nvidia representatives privately confirmed to Illinois congressman Bill Foster that the company has the technical capability to implement the chip‑tracking measures outlined in the Chip Security Act, even though the Semiconductor Industry Association had labeled those requirements as “new, untested, and potentially unfeasible.” The bill, introduced in May 2025 and co‑sponsored by Foster, seeks to compel manufacturers to verify the geographic location of advanced AI processors to prevent their smuggling into China. In informal discussions, Nvidia engineers affirmed the possibility of deploying such systems, though they did not provide written documentation.

The firm already offers tools such as Fleet Intelligence, launched in December 2025, which lets customers monitor the performance and location of their chips in data centers. While Nvidia has not clarified whether this technology would be used to curb illicit traffic, its existence suggests that “ping”‑based tracking—considered the most effective method by a leading security research group—is feasible. Congress is evaluating the inclusion of the act in the National Defense Authorization Act, and Foster plans to introduce additional legislation requiring verified licenses before a GPU can connect to a network.

This development matters because the ability to trace chips could enhance national security by limiting China’s access to high‑performance AI technology, while raising questions about manufacturers’ responsibilities and the effectiveness of the proposed regulations.

Read the original article on MIT Technology Review

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