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US Plans AI Chip Curbs on Malaysia, Thailand Over China Concerns

  • The Trump administration plans to restrict AI chip shipments to Malaysia and Thailand to prevent semiconductor smuggling into China, according to people familiar with the matter.
  • A draft rule by the Commerce Department aims to stop China from accessing banned AI processors through intermediaries in these countries, as stated by the same sources.
  • Thailand and Malaysia have acknowledged the need for clear policies as they await details on these restrictions, according to their respective officials.
  • Nvidia CEO Jensen Huang claimed there is 'no evidence' of AI chip diversion, reflecting concerns about the regulation's implications, as noted in his remarks.
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US President Trump plans to restrict Nvidia and other companies from exporting artificial intelligence (AI) chips to Malaysia and Thailand to curb semiconductor smuggling. People familiar with the matter revealed that the US is worried that China may obtain advanced chips through middlemen in these two Southeast Asian countries and plans to take action to cut off this channel.

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Bloomberg broke the news in United States on Friday, July 4, 2025.
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