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Malaysia says trade permit required for AI chips of U.S. origin

MALAYSIA, JUL 14 – Malaysia mandates trade permits on US-origin AI chips to prevent illegal diversion, especially to China, amid US pressure; the move closes regulatory gaps, officials said.

  • On July 14, Malaysian authorities announced that exporting, transshipping, or transiting high-performance AI chips originating from the United States now requires an official government permit, which takes effect immediately.
  • This move follows US pressure to prevent these advanced AI chips, especially Nvidia's, from being diverted to China through Malaysia's growing data centre industry and transshipment hubs.
  • Malaysia mandates that individuals and companies provide official notification to the government a minimum of 30 days before exporting or shipping specified goods, emphasizing that any efforts to bypass export controls will result in stringent legal consequences under the Strategic Trade Act 2010.
  • In March, Malaysian authorities indicated they would implement appropriate measures concerning suspected fraudulent transshipment of Nvidia chips, while officials in Kuala Lumpur continue to investigate reports of illicit chip movements involving third parties.
  • Malaysia has introduced permit regulations to address existing regulatory loopholes as it evaluates whether to add AI chips to its strategic items list, underscoring the country's integral position in the global AI supply chain and the possible effects on lawful commerce and technological progress.
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FRESH NEWS broke the news in on Monday, July 14, 2025.
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