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Malaysia to crack down on Nvidia chip flows under US pressure

Trade minister says Washington suspects high-end semiconductors are making it to China despite trade controls

Malaysia is planning to tighten regulations on semiconductors as it comes under US pressure to staunch the illicit flow to China of chips crucial to the development of artificial intelligence.

The country’s trade minister said Washington was demanding Malaysia closely track the movement of high-end Nvidia chips that enter the country over suspicions that many are ending up in China, in violation of US export rules.

He added that he had formed a task force with digital minister Gobind Singh Deo to tighten regulations around Malaysia’s burgeoning data centres industry, which relies on chips from industry leader Nvidia.

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