US to Impose AI Chip Restrictions on Malaysia and Thailand to Prevent Semiconductor Smuggling to China

The US administration under former President Donald Trump is planning to impose restrictions on the export of advanced AI chips from companies like Nvidia to Malaysia and Thailand. This move is aimed at halting the suspected smuggling of these semiconductor components into China, a country to which the US has already banned the sale of its advanced AI processors. According to Bloomberg sources, a draft rule by the US Commerce Department is in place to prevent these chips from being rerouted through Southeast Asia to China. Although the rule is still in draft form and may undergo changes, officials are also preparing to rescind some global curbs related to the ‘AI diffusion rule.’ The proposed restrictions come amid growing concerns that China may circumvent US export controls by using intermediaries in countries like Malaysia and Thailand to acquire critical technology. The outcome of this policy could significantly affect the semiconductor industry and international relations regarding technology exports.