Malaysia Implements Permit Requirements for US-Origin AI Chip Trade

Malaysia to Require Permits on Trade of High-End US AI Chips

Malaysia will require permits for exports and transshipments of high-performance US artificial intelligence chips, suggesting the government is seeking to clamp down on the diversion of the sensitive components to places like China. The license requires any individual or firm to notify authorities at least 30 days prior to exporting, transhipping or bringing in transit goods, if the individual or company knows or have reasonable grounds to suspect the item will be misused, or used for a restricted activity, the Ministry of Investment, Trade and Industry said in a statement on Monday. The policy is effective immediately.

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

KUALA LUMPUR, July 14 (Reuters) - Malaysia's trade ministry said on Monday that the export, transshipment and transit of high-performance artificial intelligence chips of U.S. origin will be subject to a trade permit, effective immediately. Individuals or companies are required to notify authorities at least 30 days in advance when exporting, transhipping, or bringing in transit any item that is not expressly listed on Malaysia's strategic items list, the ministry said in a statement. The move serves to close regulatory gaps while Malaysia reviews the inclusion of high-performance AI chips of U.S. origin in its list of strategic items, the ministry added. "Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities by any individual or company, who will face strict legal action if found violating the laws." The southeast Asian country has been working to tighten regulations on semiconductors as it comes under pressure from the United States to staunch the flow to China of chips crucial to the development of AI, the Financial Times reported in March. Malaysia was also if local laws were breached in the shipment of servers linked to a Singapore fraud case, as they may have contained advanced chips subject to U.S. export controls. Reporting by Danial Azhar; Editing by David Stanway Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nvidia, Other US Origin AI Chips Shipments To China Will Now Require Trade Permits, Says Malaysia, Rule Violators To Face Strict Action - NVIDIA (NASDAQ:NVDA)

On Monday, Malaysia's Ministry of Investment, Trade and Industry announced that any export, transshipment, or transit of high-performance artificial intelligence chips of U.S. origin will now require a government-issued trade permit, effective immediately. What Happened: The ministry said companies must notify authorities at least 30 days in advance if moving such items, even if they are not listed on Malaysia's current strategic goods registry, reported Reuters. "Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities by any individual or company," the ministry said in a statement, adding that violators will face strict legal action. The move aims to close regulatory loopholes while officials consider adding high-performance AI chips to Malaysia's list of strategic items. See Also: Jamie Dimon Warns Market May Be Underestimating Rate Hike Risks, Flags Investor Complacency Amid Trump Tariffs: 'Cause Of Concern' Why It's Important: The announcement follows U.S. pressure to stop the flow of restricted chips -- especially from Nvidia Corporation NVDA -- to China, amid mounting concerns over their use in advanced AI development and military applications. In March, Malaysia's Trade Minister Tengku Zafrul Aziz said the country would take "necessary action" if domestic firms were involved in allegedly fraudulent Nvidia chip transshipments via Singapore. Earlier this month, it was reported that the U.S. government is considering new export restrictions on AI chips, including Nvidia's, to Malaysia and Thailand to prevent China from obtaining them through intermediaries. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started Meanwhile, Nvidia CEO Jensen Huang is reportedly planning a diplomatic visit to China, where the company aims to launch a scaled-down version of its AI chip, modified to meet U.S. export rules. The new chip, based on the Blackwell RTX Pro 6000 but without advanced features, could be unveiled as soon as September. Benzinga's Edge Stock Rankings show that Nvidia maintains solid upward momentum across short, medium and long-term periods. More detailed performance information is available here. Photo Courtesy: IM Imagery on Shutterstock.com Read Next: Jim Cramer Bearish At $40K: 'Unlikely That Bitcoin Finds Its Footing,' CramerTracker Replies: 'Legend, Thanks Jim!' - Benzinga Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NVDANVIDIA Corp$164.900.49%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum75.97Growth98.61QualityN/AValue6.61Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Malaysia Tightens Rules on Movement of U.S.-Made AI Chips

KUALA LUMPUR, Malaysia--Malaysia has tightened rules around the movement of artificial-intelligence chips from the U.S., a hot-button issue for the Trump administration's trade policy. Permits will now be required for all high-performance AI chips entering or leaving Malaysia that originate from the U.S., Malaysia's Ministry of Investment, Trade and Industry said Monday. The measure is aimed at closing regulatory gaps and preventing potential illegal trade, it said in a statement. Last month, the ministry said it was examining media reports that a Chinese company operating in Malaysia used servers equipped with Nvidia and other AI chips to train large-language models. The U.S. has been tightening restrictions around the sale of advanced AI chips and other technology to China since 2022, citing national-security concerns. The Wall Street Journal reported in June that Chinese companies had found ways to bypass U.S. curbs on semiconductors, some involving passing through countries in Southeast Asia. A key issue mentioned by the Trump administration as it looks to establish its trade policies has been preventing the rerouting of goods via third countries to avoid higher tariffs, also known as transshipment. Letters sent to various countries, including Malaysia, earlier this month outlining tariffs warned about transshipped goods. Malaysia faces a 25% tariff on its U.S.-bound exports, and products from other countries that pass through Malaysia to skirt higher duties elsewhere will face an even higher rate. A deal the U.S. reached with Vietnam contained a similar proviso on transshipments. In Monday's statement, Malaysia's government said it "will not tolerate the misuse of its jurisdiction for illicit trading activities." Malaysia's emergence as a data-center hub has drawn billions in investment from major global tech players such as Microsoft, Alphabet's Google and TikTok parent ByteDance. That has also put it under increased geopolitical scrutiny. TA Securities senior analyst Chan Mun Chun said the trade ministry is making efforts to avoid being targeted by export controls of semiconductors and related products.