Malaysia to Strengthen Regulations on NVIDIA AI Chip Shipments Amid U.S. Concerns
Malaysia plans to enhance semiconductor regulations to monitor NVIDIA AI chip shipments amid U.S. concerns over potential transfers to China. Investigations are ongoing regarding suspicious shipments from Singapore. Despite these concerns, Malaysian authorities state they have found no evidence of fraudulent activities related to these chips. Recent reports indicate a significant increase in NVIDIA’s sales in Singapore, prompting further scrutiny of its export practices.
In light of U.S. concerns, Malaysia is set to enhance its semiconductor regulations, particularly to monitor shipments of advanced AI chips such as those produced by NVIDIA. As reported by The Edge Malaysia and Financial Times, the Trade Minister indicated that the United States has urged close scrutiny of high-end chips entering Malaysia, due to worries over their potential redirection to China.
The minister’s commitment to vigilance follows an investigation in Singapore concerning servers suspected of containing NVIDIA chips that are prohibited from being exported to China. Allegations suggest that these servers were unlawfully sent from Singapore to Malaysia, with the intention of reaching Chinese recipients, as reported by Bloomberg.
Earlier this month, Reuters highlighted the seriousness of this case, which entails USD 390 million, and noted that three individuals have been charged in Singapore for misleading Dell and Super Micro by misrepresenting the servers’ intended locations. In contrast, Malaysian authorities announced that, to date, they have not discovered any fraudulent activities in relation to the NVIDIA chips arriving from Singapore. They have expressed their commitment to work closely with U.S. and Singaporean counterparts to address any trade-related concerns.
Furthermore, scrutiny has increased regarding NVIDIA’s enhanced sales in Singapore, with reports from Bloomberg indicating a remarkable 740% rise since DeepSeek’s founding. This surge has led to speculation that Singapore may be acting as a conduit for AI chip transfers to China. Adding to this discussion, Singapore’s Second Minister for Trade and Industry pointed out that less than 1% of NVIDIA’s revenue is derived from products physically delivered to Singapore, according to Bloomberg.
In summary, Malaysia’s measures to strengthen semiconductor regulations reflect an effort to respond to U.S. concerns surrounding advanced AI chip transfers to China. The ongoing investigations in Singapore related to the unlawful shipment of NVIDIA chips emphasize international cooperation to address potential trade issues and prevent misuse of technology. The substantial increase in NVIDIA’s sales in Singapore raises additional questions about the role of the region in the AI chip supply chain.
Original Source: www.trendforce.com
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