Apple's U1 chip has been unlocked in four additional countries, meaning features like Precision Finding will now work where the chip has been unlocked.

Apple's Ultra Wideband U1 Chip Unlocked in Argentina, Pakistan, Paraguay and Solomon Islands

Previously, a lot of AirTag users found out the hard way that Precision Finding is not working for them at all, as if the feature didn't exist in the first place. It was simply because the U1 chip was disabled in their region / country. With the release iOS 14.7, Apple has went ahead and unlocked the U1 Ultra Wideband chip in four more countries, which are as follows:

ArgentinaPakistanParaguaySolomon Islands

The places where the chip is still disabled are as follows, as per Apple's Ultra Wideband availability page:

ArmeniaAzerbaijanBelarusIndonesiaKazakhstanKyrgyzstanNepalRussiaTajikistanTurkmenistanUkraineUzbekistan

Keep in mind that the Ultra Wideband chip is only available in iPhone 11 and iPhone 12 lineup of smartphones. If you have something older than that and don't see features like Precision Finding working, then it's completely normal as those older iPhones do not have a built-in U1 chip.

Apart from Precision Finding for AirTag, Apple uses the U1 chip in other great ways as well. For example, it is used in AirDrop to find contacts around you by simply pointing your phone at them. Of course, they should have a U1-enabled iPhone as well for it to work. Apart from that, HomePod mini also features a built-in U1 chip.

If you were holding back from buying the AirTag because U1 was not available in your region then you can go ahead with your purchase.