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

MALAYSIA, JUL 14 – Malaysia mandates trade permits on US-origin AI chips to prevent illegal diversion, especially to China, amid US pressure; the move closes regulatory gaps, officials said.

  • On Monday, July 14, Malaysia announced that exporting, transshipping, or transiting all U.S.-origin high-performance AI chips now requires a strategic trade permit.
  • This move follows increasing U.S. concerns and pressure to prevent illegal exports of AI chips, especially to China, amid reports of chip smuggling through Malaysia and Singapore.
  • Malaysia's government has warned that anyone violating export regulations will face stringent legal penalties under the Strategic Trade Act of 2010, and exporters must inform authorities at least 30 days prior to shipment.
  • The ministry stated that Malaysia is committed to enforcing export regulations and will take strict legal measures against individuals or companies involved in bypassing these controls or participating in illegal trade, while U.S. export restrictions focus on blocking the supply of chips from companies like Nvidia to China.
  • The announcement positions Malaysia to close regulatory loopholes in AI chip trade, potentially aligning with U.S. policies, though whether this affects Malaysia's recent U.S. tariff remains uncertain.
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FRESH NEWS broke the news in on Monday, July 14, 2025.
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