Mon Mar 24 03:47:20 UTC 2025: ## Malaysia Faces US Pressure to Curb Flow of AI Chips to China
**Kuala Lumpur, Malaysia –** Malaysia is facing increased pressure from the United States to tighten its regulations on the export of semiconductors, particularly high-end Nvidia chips, amid concerns that these chips are being diverted to China. This follows a recent report in the Financial Times citing Malaysian Trade Minister Zafrul Aziz.
Aziz confirmed that the U.S. government is requesting stricter monitoring of Nvidia chip shipments entering Malaysia, expressing concerns that servers containing these chips are not ending up in their intended data centers but are instead being rerouted. The U.S. is reportedly seeking assurances that the chips are not contributing to the development of Chinese artificial intelligence capabilities.
This development comes as the U.S. investigates DeepSeek, a Chinese AI firm whose advanced AI model raised eyebrows in January, for potential violations of U.S. chip export controls. Furthermore, Malaysia is currently conducting its own investigation into a $390 million Singaporean fraud case involving the alleged transfer of advanced chips, potentially Nvidia’s AI chips, to DeepSeek via Malaysia. Singaporean prosecutors are pursuing this case, highlighting the international implications of these alleged breaches of U.S. export controls.
Nvidia has yet to comment on these allegations. The ongoing investigations underscore the growing geopolitical tensions surrounding the global semiconductor supply chain and the critical role chips play in the development of artificial intelligence.
First Piper 