US Government Urges Malaysia to Prevent Prohibited AI Chips from Reaching China
News/Tech

US Government Urges Malaysia to Prevent Prohibited AI Chips from Reaching China

The United States is urging Malaysia to closely monitor shipments of Nvidia chips to curb potential AI technology flow to China.

The United States has heightened its scrutiny over technology imports in 2025. Recently, the US government has pressured Malaysia regarding shipments of Nvidia chips. This move is aimed at preventing the advanced chips from inadvertently enhancing China’s AI capabilities.

According to Reuters, regulations on semiconductors in Malaysia are expected to tighten. Trade Minister Zafrul Aziz mentioned, “[The US is] asking us to make sure that we monitor every shipment that comes to Malaysia when it involves Nvidia chips. They want us to ensure that servers end up in the data centers that they’re supposed to and not suddenly move to another ship.”

This request may arise from a current investigation in Malaysia concerning a fraud case that may involve advanced chips subject to US import laws, linked to the Chinese AI firm DeepSeek. With the cross-border flow of technology being closely monitored, the implications for tech shipping are significant as the US continues to worry about AI technology misuse.

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