Malaysia Tightens Semiconductor Regulations Under US Pressure

Malaysia plans to strengthen its semiconductor regulations, following pressure from the US government. Trade Minister Zafrul Aziz said that the US wants Malaysia to monitor shipments of high-end Nvidia chips closely, suspecting they may be diverted to China.

The US is investigating a technology firm, DeepSeek, which uses banned US chips for its AI model. Meanwhile, Malaysia is investigating a Singaporean fraud case that may have involved servers containing advanced, export-controlled chips.

The Singaporean authorities claim the case involves $390 million in transactions and links to Nvidia’s AI chips being transferred to Chinese firm DeepSeek. Malaysia aims to ensure that sensitive technology does not fall into the wrong hands.

Source: https://www.reuters.com/technology/malaysia-tighten-semiconductor-regulations-under-us-pressure-ft-reports-2025-03-24