Malaysia to Curb Nvidia Chip Flow to China

Malaysia plans to tighten semiconductor regulations following U.S. pressure to prevent the illegal flow of AI-critical Nvidia chips to China. A special task force will monitor the country’s expanding data center sector, which relies on powerful Nvidia processors for AI applications. U.S. export controls aim to slow China’s AI advancements, especially in military applications. Tensions rose after a fraud case involving the illegal sale of Nvidia chips through Malaysia to China. Despite this, Nvidia states that its Singapore operations mainly handle international billing rather than shipping physical chips. Malaysia has become a major data center hub, with over $25 billion in investments from companies like Nvidia, Microsoft, and ByteDance.