[News] Malaysia Reportedly to Monitor NVIDIA AI Chip Shipments Amid U.S. Concerns Over Transfers to China

Malaysia is planning to strengthen its semiconductor regulations in response to U.S. pressure, aiming to curb the transfer of advanced AI chips to China, as noted by a report from The Edge Malaysia, citing Financial Times.

According to the report, Malaysia’s Trade Minister stated that the U.S. has urged Malaysia to closely monitor the movement of high-end NVIDIA chips entering the country, amid concerns that a significant number may be shipped to China.

The minister’s pledge comes amid a Singapore investigation into the ultimate end users of servers—believed to contain NVIDIA chips banned from the Chinese market—that were allegedly shipped from Singapore to Malaysia, with suspicions that the intended recipient may be China, as Bloomberg indicates.

Earlier this month, Reuters reported that the case involves USD 390 million, with Singapore prosecutors charging three men for deceiving Dell and Super Micro by falsifying the servers’ declared destinations.

Meanwhile, according to Bloomberg, Malaysian authorities stated earlier this month that they have not yet found evidence of fraud involving NVIDIA AI chips shipped from Singapore. However, they affirmed their commitment to cooperating with the U.S. and Singapore to address any concerns related to the trade of advanced AI chips to China.

U.S. Probes DeepSeek’s Potential Acquisition of NVIDIA AI Chips

Previously, a report from Bloomberg revealed that NVIDIA’s sales in Singapore have surged by as much as 740% since DeepSeek was established. This sharp increase has drawn scrutiny, as some speculate that Singapore may be serving as an intermediary for AI chip shipments to China.

The matter drew further attention when Tan See Leng, Singapore’s Second Minister for Trade and Industry, stated that less than 1% of NVIDIA’s total revenue comes from products physically delivered to the country, as highlighted by Bloomberg.

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• [News] Singapore Reportedly Probes NVIDIA Chip Shipments to Malaysia over China Diversion Concerns

(Photo credit: NVIDIA)