Malaysia Regulates AI Chip Shipments Amid U.S. Crackdown on China Smuggling

Malaysia Regulates AI Chip Shipments Amid U.S. Crackdown on China Smuggling Malaysia Regulates AI Chip Shipments Amid U.S. Crackdown on China Smuggling

Malaysia clamps down on exports of high-performance U.S. AI chips

Malaysia now requires permits for exports of high-performance U.S. AI chips. The government aims to stop sensitive hardware from reaching China.

Starting immediately, exporters must notify Kuala Lumpur 30 days before shipping. This applies to individuals and companies. They also have to report if they suspect misuse or restricted activities.

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The trade and industry ministry said Malaysia "will not tolerate the misuse of Malaysia’s jurisdiction for illicit trading activities.”

The move comes amid pressure from Washington. The U.S. banned advanced AI chip sales to China in 2022. Malaysia has been a suspected route for diverting these components.

Malaysia "will not tolerate the misuse of Malaysia’s jurisdiction for illicit trading activities,” the ministry said.

This new regulation puts Malaysia on the frontline of U.S.-China tech tensions. Exporters now face tighter scrutiny on AI chip shipments.

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