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New iOS devices have precise AirTag locating ability via U1 whereas not so new devices just have AirTag location displayed in Find My. Better than nothing.
 
Do AirTags support geofencing? Can I set it in a way that if a tag leaves a certain perimeter or becomes out of range, I will be alarmed?

If they do, it wouldn't be reliable.

AirTags cannot determine their location and they also can't make any kind of network connection. They rely on other devices to provide all of that.
 
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