US Considers Location Trackers in AI Chips, Officials Say

Semiconductor Industry & Trade Tariffs - The semiconductor industry is expected to face localized tariffs, impacting companies importing chips [1] - The US administration is anticipated to impose tariffs on semiconductors as a category, regardless of origin, potentially leading to individual country negotiations [2] - Industries like automakers and chip plants may experience increased costs due to these tariffs [2] - Hyperscalers, including companies investing in AI, risk facing higher costs on chips, with potential tariffs adding up to 25% [3] - The Commerce Department's investigation into tariffs under the 232 process has been anticipated since April [4] Export & Tracking - The US aims to expand its American tech stack, especially advanced AI chips, and wants to track where the chips are going [6] - The US intends to sell semiconductors more broadly, including to China and the Middle East, while tracking them to prevent diversion to countries like Russia and Iran [6][7][8] - The US wants to ensure that semiconductors are not diverted or smuggled to adversaries like China, Russia, and Iran, who could use them for dual-use AI capabilities [7][8]