Malaysia is stepping up its efforts to support the U.S. in restricting the flow of advanced AI chips to China.
On Monday, the Malaysian Ministry of Investment, Trade and Industry introduced new rules limiting the export of U.S.-origin AI chips. Under the new policy, individuals and companies must provide Malaysian authorities with at least 30 days’ notice before exporting or transshipping these chips. The measures take effect immediately.
“Malaysia remains committed to preventing any efforts to bypass export controls or participate in illegal trade,” the Ministry stated in a press release, adding that individuals or companies found violating the Strategic Trade Act 2010 or related regulations will face severe legal consequences.
Reports of alleged smuggling of U.S. AI chips into China have surfaced repeatedly in recent months.
Allegations of Extreme Smuggling Tactics to Bypass Chip Export Controls
In an April blog post, Anthropic alleged that China had already established advanced smuggling operations. The post described extreme methods used to transport the chips, including concealing them inside prosthetic baby bumps and hiding GPUs in shipments of live lobsters.
Anthropic’s April blog post supported the implementation of stricter U.S. export controls on AI chips to curb smuggling activities. The government is expected to introduce these additional restrictions soon.
According to a Bloomberg report last week, the Trump administration is considering tightening export rules on AI chips particularly from companies like Nvidia to countries such as Malaysia and Thailand, aiming to block China from obtaining the chips through alternative routes. However, the government has not officially announced anything yet.
Meanwhile, the U.S. Department of Commerce is developing its own set of broader AI chip export regulations, following the formal withdrawal of the Biden administration’s AI Diffusion rules in May.
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