Malaysia Strengthens Nvidia Chip Controls Amid US Pressure

Malaysia is set to strengthen its semiconductor regulations under increased U.S. pressure to monitor the movement of high-end Nvidia chips amid concerns of their illicit diversion to China. Trade Minister Zafrul Aziz announced the formation of a task force to ensure these chips end up in designated data centers and not rerouted elsewhere, as part of efforts to comply with U.S. export controls. This move follows a $390 million fraud case in Singapore involving the suspected sale of Nvidia chips to China via Malaysia. Malaysia, with over $25 billion invested in its data center market by major companies like Nvidia and Microsoft, faces heightened scrutiny in the global semiconductor supply chain. The U.S. aims to prevent Chinese companies from acquiring these chips for potential military applications through third countries. Aziz acknowledged the challenge of enforcing these regulations across complex global supply chains.