Malaysia Imposes Controls on AI Chip Exports

Malaysia’s Ministry of International Trade and Industry announced on July 14 that all U.S.-manufactured high-end AI chips must obtain a strategic goods “trade license” from the government and notify authorities 30 days in advance if they are to be exported, transshipped, or pass through Malaysia. Individuals and enterprises engaging in export control evasion or illegal trade will face severe legal sanctions. “Malaysia is considering whether to include U.S.-made high-end AI chips in its list of strategic items,” the ministry added.

 

 

 

 

 

The move coincides with intensified U.S. efforts to crack down on the transshipment of U.S.-made AI chips to China via intermediary channels like Malaysia. The U.S. Department of Commerce has drafted new rule proposals to regulate high-end chip transactions with Malaysia and Thailand, requiring U.S. chip manufacturers such as NVIDIA to apply for licenses before exporting chips to these countries. Its core goal remains blocking U.S. advanced AI chips from flowing into the Chinese market.

Overall, Malaysia’s new regulations reflect its attempt to find a balance in tech geopolitical games. On one hand, it needs to strengthen export controls to comply with U.S. requirements; on the other, it strives to maintain its status as a regional semiconductor hub, avoiding disruptions to local industrial chains due to compliance pressures.

As a key node in global semiconductor manufacturing and logistics, Malaysia plays a vital role in chip-related transshipments. The new measures aim to prevent the country from becoming a loophole in U.S. export restrictions while safeguarding its attractiveness to international tech investors.

This development underscores how tech geopolitics is reshaping global supply chain dynamics, with middle-income economies like Malaysia navigating the complexities of balancing major powers’ demands while protecting their own economic interests.