Malaysia Imposes Restrictions on U.S.-Made AI Chip Exports
(MENAFN) Malaysia has swiftly enacted new restrictions on the export, transshipment, and transit of high-performance artificial intelligence (AI) chips originating from the United States, local media reported on Monday. These activities will now require a Strategic Trade Permit under the country’s Strategic Trade Act 2010, according to the Ministry of Investment, Trade and Industry (MITI), as cited by media.
“Malaysia will not tolerate the misuse of its jurisdiction for illicit trading activities,” the ministry declared. “MITI remains committed to preserving a safe, secure, transparent and rules-based trading environment with all its trade partners,” including the US.
The announcement follows a recent media report stating that Washington is preparing to restrict exports of cutting-edge AI chips to Malaysia, aiming to prevent these components from being redirected to China amid a wider clampdown on semiconductor smuggling.
Although Malaysia has previously committed to enhancing its oversight on chip imports, shipments to the country have continued to rise—raising red flags in Washington. In response, the U.S. is considering new controls that may still include temporary waivers for American and allied companies operating within Malaysia.
Under the revised regulations, individuals and businesses must inform Malaysian authorities at least 30 days in advance if they know or suspect the chips could be used improperly or in restricted ways.
"This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the SIL (Strategic Items List) of the STA 2010 (Strategic Trade Act)," the ministry noted.
Malaysia has emphasized that it will enforce the law rigorously, warning of tough legal consequences for any breaches of the Strategic Trade Act 2010 or associated statutes.
This development coincides with an escalating trade dispute, as U.S. President Donald Trump recently announced a 25% tariff on all Malaysian exports, set to take effect on August 1.
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