US Reportedly Pushing Malaysia to Watch for Illegal Exports of US Chips
The U.S. is asking Malaysia to more closely track shipments of advanced semiconductors, including chips made by U.S. firm Nvidia, to make sure they’re not transiting the country before ending up in China in violation of U.S. export controls, the Financial Times reported. Trade Minister Zafrul Aziz said the U.S. is “asking us to make sure that we monitor every shipment that comes to Malaysia when it involves Nvidia chips,” according to the report. “They want us to make sure that servers end up in the data centres that they're supposed to and not suddenly move to another ship." Aziz also said Malaysia recently formed a task force to tighten regulations around the country’s data center sector, which relies on Nvidia chips.
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Other Asian nations are also looking to crack down on illegal shipments of semiconductors -- Singapore last month charged three men with fraud after linking them to alleged illegal exports of advanced chips made by Nvidia (see 2503030014). The U.S. has published rules in recent months to increase restrictions on exports of advanced chips and chip equipment, especially chips used to power artificial intelligence technologies (see 2503200002, 2501150040 and 2412020016).
The Commerce Department and Bureau of Industry and Security didn't respond to requests for comment.