(Updates to add Nvidia's response in the fourth 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.

Reuters said 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).

"We don't install secret tracking devices in our products," a spokesperson for Nvidia told MT Newswires.

Dell, Super Micro, and AMD did not immediately respond to MTNewswires' requests for comment.

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