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3d ago

Malaysia Mandates Permits for U.S.-Origin AI Chip Exports and Transshipments

It closes regulatory gaps under U.S. pressure to curb China-bound chips, bolsters Malaysia’s case to lift looming 25% U.S. tariffs

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Overview

  • Malaysia’s Ministry of Investment, Trade and Industry requires a strategic trade permit for all exports, transshipments and transits of high-performance AI chips of U.S. origin effective July 14.
  • The requirement aims to close oversight loopholes and initiate a review to add U.S.-origin AI chips to Malaysia’s Strategic Items List for tighter export controls.
  • Trade Minister Tengku Zafrul Aziz said authorities have found no evidence of illicit AI chip smuggling and are seeking U.S. assistance in related investigations.
  • U.S. officials are advancing plans to extend export restrictions on advanced AI chips to transit hubs including Malaysia and Thailand to block circumvention of its China embargo.
  • Reports indicate Nvidia is preparing a compliant, scaled-down AI chip variant and planning a diplomatic trip to China to preserve its market access.