The Malaysian government takes seriously allegations that the country is being used as a transit point for smuggling NVIDIA artificial intelligence (AI) chips to China, said MITI minister Tengku Zafrul Abdul Aziz. During an interview on Bernama TV’s Ruang Bicara Aspirasi Ekonomi programme, he affirmed that Malaysia does not want any party to exploit its position as a semiconductor and regional logistics hub for illegal activities.
“We firmly adhere to export control regulations under the Strategic Trade Act, which governs the export, transit, and transhipment of strategic goods, including semiconductors,” he said. “Malaysia’s policy aligns with control measures implemented by the US, the European Union (EU), and the UK.”
It was reported last month that the US Commerce Department is probing Chinese AI startup DeepSeek for possible use of restricted semiconductor technology, including those from NVIDIA. The firm gained international attention in January 2025 for releasing an AI model and assistant rivalling OpenAI’s ChatGPT at a fraction of the cost. According to Reuters, sources suggest that AI chips are being smuggled into China through intermediaries in Singapore, the UAE, and Malaysia.
To strengthen oversight, Zafrul said the government is enhancing international cooperation to monitor the flow of sensitive technologies, such as NVIDIA’s H100 and A100 chips, which are used in high-performance AI applications. He added that Malaysia remains committed to complying with multilateral international export control regulations.
(Source: Bernama)
