Malaysia Tightens Export Controls on US-Origin AI Chips to Prevent Diversion

Malaysia has implemented immediate permit requirements for the export, transit, or temporary import of high-performance AI chips originating from the US. The new measures under the Strategic Trade Act 2010 aim to prevent potential misuse, particularly in restricted destinations like China.

The regulations employ a 'Catch-All Control' mechanism, applying even to chips not formally listed as controlled items. Companies must notify authorities 30 days in advance if they suspect potential unauthorized end-use, closing what the Ministry of Investment, Trade and Industry calls 'regulatory gaps.'

This MOVE aligns with US efforts to curb semiconductor smuggling networks. Malaysia's strategic position in semiconductor manufacturing and testing makes it a focal point for export control enforcement as Washington seeks to limit advanced AI chip transfers to secondary markets.