Nvidia said chip tracking was feasible, lawmaker says

Nvidia representatives privately told Representative Bill Foster that the company could implement location-verification safeguards proposed in the Chip Security Act, according to the Illinois Democrat. The acknowledgment contrasts with the Semiconductor Industry Association’s position in March 2026 that the tracking mandates were “new, untested, and potentially infeasible.” Nvidia belongs to the industry group and did not respond to requests for comment or confirmation of Foster’s account. Foster said the representatives provided no written commitment.

The legislation would require verification of advanced AI chips’ locations to help prevent smuggling to China. Permitted methods would include facility inspections, company attestations or signals sent by GPUs when they come online. The Center for Security and Emerging Technology identified the signal-based approach as the most cost-effective option. Nvidia’s Fleet Intelligence tool, announced in December 2025, already allows customers to monitor chips across data centers and can indicate their country, although Nvidia has not clarified whether it could support anti-smuggling enforcement.

The proposed safeguards would reveal chip locations but would not allow investigators to disconnect smuggled hardware. Foster, a cosponsor of the bill, plans stricter legislation requiring operating licenses for advanced GPUs, with license verification before connection. He says controversy surrounding Nvidia has increased political support for geographic verification requirements.