Malaysia clamps down on export, transit of US-made AI chips

Kuala Lumpur: Malaysiaclamped down Monday on the export, transshipment and transit of all US made artificial intelligence chips, seeking to stop illeg...

Kuala Lumpur: Malaysia clamped down Monday on the export, transshipment and transit of all US-made artificial intelligence chips, seeking to stop illegal trade to countries including China.

"Effective immediately, all exports, transships and transits of high-performance AI chips of US origin are subject to a strategic trade permit," the investment, trade and industry ministry said in a statement.

"This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin" into its so-called Strategic Items List, the government said.

Washington has previously voiced concern about the transshipment of US-made AI chips, particularly the potential of sensitive components being diverted to China.

Malaysia is a major hub for the export and transhipment of high-end AI chips due to its position in the global supply chain, its strategic location and advanced logistical capabilities, experts say.