admin Malaysia is set to tighten semiconductor regulations as pressure mounts from the United States. The US wants Malaysia to track the movement of high-end Nvidia chips that enter the country. Authorities suspect many of these advanced chips end up in China, fueling artificial intelligence development.
The US government demands strict monitoring of Nvidia chip shipments. It insists that servers with AI chips reach designated data centers and do not get redirected. Trade Minister Zafrul Aziz confirmed the increased scrutiny on chip movements.
Malaysia is investigating if local laws were violated in a case involving servers linked to Singapore fraud. Prosecutors in Singapore revealed that fraudulent transactions amounted to $390 million. Reports suggest these transactions may involve the illegal transfer of AI-powered Nvidia chips to Chinese firms.
The United States is also probing DeepSeek, a leading AI firm, for using banned chips. Authorities fear that Malaysia could be a key transit point for restricted AI technology. This investigation adds urgency to Malaysia’s regulatory tightening.
With growing global concerns, Malaysia aims to strengthen its semiconductor supply chain. By enhancing regulations, the country seeks to balance trade relations while avoiding potential violations.
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