A US senator has called on President Donald Trump’s administration to assist Malaysia in curbing the illegal smuggling of US-made artificial intelligence (AI) chips into China, Reuters reported. The request follows US intelligence assessments that identify Malaysia as one of several countries allegedly used as transit points in organised efforts to bypass export restrictions on advanced semiconductors.
Senator Tom Cotton of Arkansas made the appeal in a letter addressed to US Commerce Secretary Howard Lutnick. In it, he noted that Malaysian authorities had started cracking down on smuggling operations and urged Washington to help the country strengthen its screening programmes to stop restricted chips from reaching China.
Cotton also reiterated his support for embedding location-verification technology into US semiconductors to prevent them from being illegally re-exported. He suggested that chips equipped with such safeguards should receive expedited approval for export to Malaysia. “As is often the case, US companies are at the forefront of developing creative and innovative technical solutions, which will help add layers of assurance against illegal diversion,” the senator wrote in his 30 October letter.
He further proposed that both governments develop a “priority customs clearance” system for shipments of advanced US chips equipped with anti-diversion mechanisms. Cotton argued that such cooperation would strengthen trade security while maintaining supply chains between US technology firms and Malaysian partners.
Earlier in July this year, Malaysia announced that it would require permits for all exports, transshipments, and transits of high-performance US-made chips. The move was part of Kuala Lumpur’s broader effort to align with international export control standards amid growing geopolitical pressure over chip technology transfers.
(Source: Reuters)
