nvidia_malaysia
Malaysia Agrees to Restrict Sales of Nvidia’s High-End Semiconductors
Malaysia has agreed to restrict the sales of Nvidia Corporation’s (NVDA) high-end semiconductors after a request was made by the United States.
The US has requested Malaysia not to allow Nvidia chips, especially those with AI capabilities, to reach China. This follows increasing fears that such consignments could violate US export controls on advanced technologies.
US Urges Malaysia to Monitor End-Users
Investment, Trade, and Industry Minister Zafrul Abdul Aziz has stated that the United States administration has requested Malaysia to pay attention to the country’s end-users of Nvidia chips.
He urged the Malaysian government not to allow high-configuration servers containing Nvidia chips to be channeled elsewhere but to the right data centers.
The US has raised concerns regarding the transfer of these chips to China again, as this violates the applicable trade restrictions.
Investigation into Nvidia Shipments
The probe in Singapore adds more complexity to the situation. Authorities in Malaysia are investigating different consignments that were tagged Nvidia chips dropping from Singapore to Malaysia. Three people have been named and charged for conspiring to deceive server manufacturers Dell Technologies Inc. and Super Micro Computer Inc. about the final users of the hardware.
See also: Huawei says its AI phone now has ’emotions’ trained by DeepSeek.
Singaporean authorities have alleged that the servers that could contain Nvidia chips prohibited from being sold in China may have passed through Malaysia in an illegitimate manner. However, Malaysian authorities have claimed that they have not found any sign of fraud regarding Nvidia chips being shipped from Singapore. They stated that they are engaging with US and Singaporean authorities to address any contingencies concerning the shipment of certain technology products.
Growing Tensions Over Semiconductors
The probe into Nvidia’s chip shipments is also an extension of a deep-rooted conflict between the United States and Asia for more innovation in semiconductor technology. The US has been keen on limiting China’s access to high-end silicon, as they believe that this technology may help the Chinese military. As a result, US authorities have tightened export controls and imposed strict regulations on the sale of such advanced chips and equipment.
To prevent loopholes in its export controls, the US has also targeted regions like Southeast Asia and the Middle East, suspecting that they serve as intermediaries in supplying China with restricted technology. In recent times, Nvidia has faced scrutiny, mainly because a significant portion of its revenue originates from Singapore, despite the relatively low volume of physical shipments to the country.
See also: Meta AI rolls out a limited chatbot in Europe after a year of regulatory delays.
The US is also examining whether DeepSeek and other Chinese AI start-ups acquired Nvidia chips through intermediaries in Singapore. US lawmakers have raised concerns over this issue, pointing out that while Nvidia generates substantial revenue from Singapore, the actual shipments to the country are minimal. Both Nvidia and Singaporean officials have clarified that the island serves primarily as a billing hub, with only a limited number of Nvidia products shipped directly to the area.
Nvidia at the Forefront of Global Computing
As the debate continues, Nvidia remains at the center stage of the global computing industry. Recently, Nvidia’s CEO, Jensen Huang, announced that the company is opening a quantum computing lab in Boston.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming web class.