Malaysia to tighten semiconductor regulations under US pressure: Report

Malaysia to tighten semiconductor regulations under US pressure: Report

Malaysia plans to impose stricter semiconductor regulations as a result of pressure from the United States to stop the flow of chips necessary for the development of artificial intelligence ( AI ) to China, according to a report from the Financial Times on Sunday ( Mar 23 ).

According to the report, trade secretary Zafrul Aziz claimed that the US government was requesting that Malaysia carefully monitor the flow of premium Nvidia chips into the nation because it believed many of them would end up in China.

According to Aziz,” The US is ] requesting that we make sure to check every sale that enters Malaysia when it involves Nvidia cards.”

They want us to ensure that machines don’t unavoidably shift to another ship and end up in the information centers where they should be.

Nvidia did not respond to a Reuters request for comment right away.

The US is looking into whether DeepSeek, whose AI woman’s performance in January rocked the tech industry, has been using banned US cards.

Malaysia is now looking into whether native laws were broken by the delivery of servers linked to a fraud case in Singapore because they may have contained advanced chips that are subject to US export controls.

In a court hearing earlier in March, Singapore-based firms were charged with defrauding a Singaporean company of sending US servers to Malaysia involve transactions for US$ 390 million.

The situation has been linked to the possible exchange of Nvidia’s artificial brains chips to Chinese artificial intelligence company DeepSeek, according to Singapore media.