Malaysia Takes Steps to Prevent AI Chip Smuggling to China
In a move to curb the smuggling of advanced AI chips to China, Malaysia has announced new restrictions on the export of U.S. origin AI chips.
The Malaysian Ministry of Investment, Trade and Industry has mandated that individuals and companies must notify authorities at least 30 days in advance before exporting or transshipping U.S. AI chips, effective immediately.
The Ministry emphasized that strict legal action will be taken against any individual or company found violating export controls or engaging in illicit trade activities.
Recent reports have highlighted alleged chip smuggling of U.S. AI chips into China, with claims of sophisticated smuggling networks and creative methods being used.
In response to these concerns, there are talks of the U.S. imposing more export restrictions on AI chips to prevent such activities. The Trump administration is reportedly planning to further restrict the export of AI chips from companies like Nvidia to Malaysia and Thailand.
The U.S. Department of Commerce is also working on its own set of general AI chip export restrictions after rescinding the Biden administration’s AI Diffusion rules in May.
