US Plans AI Chip Curbs on Malaysia, Thailand Over China Concerns
(Bloomberg) — President Donald Trump’s administration plans to restrict shipments of AI chips from the likes of Nvidia Corp. (NVDA) to Malaysia and Thailand, part of an effort to crack down on suspected semiconductor smuggling into China.
Most Read from Bloomberg
Invest in Gold
Powered by Money.com – Yahoo may earn commission from the links above.
A draft rule from the Commerce Department seeks to prevent China — to which the US has effectively banned sales of Nvidia’s advanced AI processors — from obtaining those components through intermediaries in the two Southeast Asian nations, according to people familiar with the matter. The rule is not yet finalized and could still change, said the people, who requested anonymity to discuss private conversations.
Officials plan to pair the Malaysia and Thailand controls with a formal rescission of global curbs from the so-called AI diffusion rule, the people said. That framework from the end of President Joe Biden’s term drew objections from US allies and tech companies, including Nvidia. Washington would maintain semiconductor restrictions targeting China — imposed in 2022 and ramped up several times since — as well as more than 40 other countries covered by a 2023 measure, which Biden officials designed to address smuggling concerns and increase visibility into key markets.
All told, the regulation would mark the first formal step in Trump’s promised overhaul of his predecessor’s AI diffusion approach — after the Commerce Department said in May that it would supplant that Biden rule with its own “bold, inclusive strategy.” But the draft measure is far from a comprehensive replacement, the people said. It doesn’t answer, for example, questions about security conditions for the use of US chips in overseas data centers — a debate with particularly high stakes for the Middle East. It’s unclear whether Trump officials may ultimately regulate AI chip shipments to a wider swath of countries, beyond the Malaysia and Thailand additions.
The Commerce Department didn’t respond to a request for comment. The agency has offered few specifics about its regulatory vision beyond what Secretary Howard Lutnick told lawmakers last month: The US will “allow our allies to buy AI chips, provided they’re run by an approved American data center operator, and the cloud that touches that data center is an approved American operator,” he said during congressional testimony.
Nvidia, the dominant maker of AI chips, declined to comment, while spokespeople for the Thai and Malaysian governments didn’t respond. Nvidia Chief Executive Officer Jensen Huang has previously said there’s “no evidence” of AI chip diversion, in general remarks that didn’t touch on any particular country. In response to earlier Bloomberg queries about curbs focused on smuggling risks, Thailand said it’s awaiting details, while Malaysia’s Ministry of Investment, Trade and Industry said clear and consistent policies are essential for the tech sector.
Washington officials for years have debated which countries should be able to import American AI chips — and under what conditions. On one hand, the world wants Nvidia hardware, and US policymakers want the world to build AI systems using American technology — before China can offer a compelling alternative. On the other, once those semiconductors leave American and allied shores, US officials worry the chips could somehow make their way to China, or that Chinese AI companies could benefit from remote access to data centers outside the Asian country.
Southeast Asia is a key focus. Companies including Oracle Corp. (ORCL) are investing aggressively in data centers in Malaysia, and trade data shows that chip shipments there have surged in recent months. Under pressure from Washington, Malaysian officials have pledged to closely scrutinize those imports, but the Commerce Department’s draft rule indicates the US still has concerns.
Semiconductor sales to Malaysia also are a focal point of a court case in neighboring Singapore, where prosecutors have charged three men with defrauding customers about the ultimate destination of AI servers — originally shipped from the island nation to Malaysia — that may have contained advanced Nvidia chips. (Nvidia is not the subject of Singapore’s investigation and has not been accused of any wrongdoing.)
Related: Malaysia Downplays Huawei Deal as US Checks China’s AI Reach
The export curbs on Malaysia and Thailand would include several measures to ease pressure on companies with significant business operations there, people familiar with the matter said. One provision would allow firms headquartered in the US and a few dozen friendly nations to continue shipping AI chips to both countries, without seeking a license, for a few months after the rule is published, people familiar with the matter said.
The license requirements also would still include certain exemptions to prevent supply chain disruptions, the people said. Many semiconductor companies rely on Southeast Asian facilities for crucial manufacturing steps like packaging, the process of encasing chips for use in devices.
—With assistance from Patpicha Tanakasempipat, Michael Shepard and Olivia Solon.
Amid rising U.S. export controls and looming tariff risks, Dutch chipmaker NXP is doubling down on its China localization strategy—“In China, For China, For the World.” According to Chinese outlet Jiemian, the company now plans to partner with a local foundry to manufacture its chips entirely within China. Citing remarks from Xiang Zhou, Marketing Director
Archaeologists have unearthed an assemblage of 35 wooden tools — digging sticks and small, complete, hand-held pointed tools — at the Early Paleolithic site of Gantangqing in southwestern China. This discovery reveals that hominins who used these tools crafted the wooden implements not for hunting, but for digging and processing plants. The wooden tools found
Beijing is rapidly closing the gap on the United States in the global artificial intelligence race, sparking fears that China’s advancements could fuel strategic military capabilities and amplify disinformation, according to a Wall Street Journal report. Multinational banks, universities, and tech companies across Europe, the Middle East, Africa, and Asia are increasingly adopting Chinese language
Chinese Foreign Minister Wang Yi told the European Union’s top diplomat on Wednesday that Beijing cannot afford a Russian loss in Ukraine because it fears the United States would then shift its whole focus to Beijing, according to several people familiar with the exchange. The comment, to the EU’s Kaja Kallas, would confirm what many
In her late 20s, Aleese Lightyear worked in reality TV production and lived in New York City, which she thought was her dream. “At the height of my career in New York, I was probably making $100,000 a year [and] working eight months out of the year, which on paper sounds great, but New York
The Trump administration has reportedly relaxed export license rules for some chip design software sales to China. According to a Bloomberg report, the US Commerce Department has informed Siemens AG – one of the world’s leading chip design software providers that requirements to seek government licenses for business in China are no longer in place.
BEIJING China warned on Thursday against trade deals that “hurt third parties” after U.S. President Donald Trump said he had struck an agreement with Vietnam. “China has always advocated that all parties resolve economic and trade differences through equal dialogue and consultation,” Foreign Ministry spokeswoman Mao Ning said. “At the same time, relevant negotiations and
Home » AIRLINE NEWS » China Bridges The Past And Future By Linking Quanzhou’s Tang Dynasty Legacy To Modern Hong Kong Through Greater Bay Airlines’ Powerful Daily Service Thursday, July 3, 2025 Greater Bay Airlines (GBA) is expanding its route network with a new scheduled service connecting Hong Kong to Quanzhou in Fujian Province, beginning
![[News] NXP Reportedly Eyes Local Foundry Partner to Boost Full Chipmaking in China](https://koala-by.com/wp-content/uploads/2025/07/NXP-Hamburg-Germany-624x416.jpg)
