Amid concerns over DeepSeek’s use of banned NVIDIA chips and fraud investigations, Malaysia tightens semiconductor rules under US pressure to stop AI chips from reaching China.
Malaysia is tightening regulations on semiconductors following US pressure to stop chips crucial for AI from reaching China, according to a report by the Financial Times. Trade Minister Zafrul Aziz stated that the US is urging Malaysia to closely track shipments of high-end NVIDIA chips.
The US suspects many of these chips are ending up in China. According to the report, Aziz explained, that the US wants them to monitor “every” shipment involving NVIDIA chips. They also need to ensure servers reach their designated data centres and are not diverted elsewhere.
This comes as the US investigates whether Chinese AI firm DeepSeek has been using banned American chips. DeepSeek’s AI model, which gained attention in January, has raised concerns.
Malaysia is also reviewing whether its laws were violated in a fraud case involving the shipment of servers from Singapore. These servers may have contained advanced chips subject to US export controls.
On the other hand, Singaporean prosecutors revealed that the case involves $390 million in transactions. The case may also be linked to NVIDIA chips being transferred to DeepSeek.
According to Reuters, media in Singapore have connected the case to the potential transfer of NVIDIA’s AI chips to DeepSeek.
The growing scrutiny highlights increasing tensions between the US and China over access to AI technology.
