Malaysia imposes trade permits for AI chips of US origin
Individuals or companies have to notify authorities at least 30 days in advance for exporting, transhipping or bringing in transit items not listed on Malaysia’s strategic items list.
Malaysia’s government has said that the export, transshipment and transit of high-performance AI chips of US origin will be henceforth subject to a trade permit, according to a Reuters report.
Individuals or companies have to notify authorities at least 30 days in advance for exporting, transhipping or bringing in transit items not listed on Malaysia’s strategic items list, the country’s trade ministry said.
“Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities by any individual or company, who will face strict legal action if found violating the laws,” Malaysia’s trade ministry said.
Countries such as Malaysia are under increasing pressure from the US to stem the flow of high-performance AI chips to China. The Biden administration effectively banned the sale of advanced AI chips to China. Donald Trump’s government has continued with the hardline stance on Beijing when it comes to state-of-the-art AI chips, like the ones made by Nvidia.
Malaysia is an important player in the AI supply chain, home to many facilities used for developing and deploying AI models, Bloomberg reports.
Last week, Trump slapped a 25% tariff on Malaysia, part of a larger move by the US president to crack down on what he claims are “unsustainable trade deficits” between the US and its trading partners.
Meanwhile, a bipartisan pair of US senators has sent a letter to Nvidia CEO Jensen Huang about his upcoming trip to China, warning him to refrain from meeting with companies that are suspected of undermining US chip export controls, according to another Reuters report.