Malaysia Imposes Restrictions on Export and Transit of US-Made AI Chips
On Monday, Malaysia enacted restrictions on the export, transshipment, and transit of all artificial intelligence chips manufactured in the United States, aiming to prevent illegal trade to nations such as China.
According to a statement from the Ministry of Investment, Trade and Industry, “Effective immediately, all exports, transshipments, and transits of high-performance AI chips originating from the US will require a strategic trade permit.”
The government noted that this measure is designed to address regulatory loopholes while Malaysia conducts a further assessment regarding the inclusion of US-made high-performance AI chips on its Strategic Items List.
Previously, Washington has expressed concerns regarding the transshipment of American AI chips due to the risk of sensitive components being rerouted to China.
Experts indicate that Malaysia serves as a significant hub for exporting and transshipping high-end AI chips because of its role in the global supply chain, advantageous geographic location, and sophisticated logistical capabilities.
Last month, Kuala Lumpur indicated it was looking into reports suggesting that a Chinese firm might have been circumventing US export restrictions on semiconductors by utilizing servers containing Nvidia chips located in Malaysia.
The Wall Street Journal reported in March that Chinese engineers transported hard drives to Malaysia containing data for constructing AI models within Malaysian data centers using advanced US-manufactured chips. The engineers reportedly intended to return these AI models back to China.
In an effort to maintain its technological advantage, the United States has tightened restrictions on advanced semiconductor exports to China.
China has consistently maintained that its companies must adhere to local laws and regulations. “China is prepared to collaborate with regional countries including Malaysia to uphold a free and open international trade order,” stated foreign ministry spokesman Guo Jiakun at that time.
On Monday, Malaysia reaffirmed its commitment “to firmly oppose any attempts by individuals or companies to bypass export controls or engage in illicit trading activities.”
