Malaysia Controls AI Chip Exports as US Targets China Smuggling

Malaysia will now require permits for exports of high-performance US artificial intelligence chips, suggesting the government is seeking to clamp down on potential diversion of the sensitive components to places like China.

Effective immediately, individuals and companies must notify Kuala Lumpur at least 30 days prior to exporting or shipping such hardware, Malaysia’s trade and industry ministry said Monday. They must inform the agency if they know or “have reasonable grounds” to suspect the items will be misused or used for restricted activities.

Malaysia “will not tolerate the misuse of Malaysia’s jurisdiction for illicit trading activities,” the ministry said. Kuala ...