Malaysia imposes export restrictions on US-made AI chips

Malaysia on Monday imposed strict restrictions on the export, transshipment, and transit of all US-made AI chips, a move aimed at curbing illegal trade involving countries like China.

The Ministry of Investment, Trade, and Industry explained in a statement that “all exports, transshipments, and transits of US AI chips are now subject to the Strategic Trade Authorization System.”

The government indicated that “this initiative aims to close regulatory loopholes while Malaysia continues its review of the possibility of including these advanced US-made chips on the list of strategic goods.”

Washington has previously expressed concern about the export of US AI chips, particularly the potential diversion of sensitive components to China.