US Plans To Tighten AI Chip Export Rules For Malaysia, Thailand

2025-07-07 07:01:36

(MENAFN- Asia Times) The United States plans to tighten its export controls on Nvidia's high-end artificial intelligence (AI) chips, specifically targeting Malaysia and Thailand, to prevent Chinese firms from obtaining those processors to train their AI models.

The US Commerce Department is drafting a preliminary version of a new export rule that would require any company to obtain a license before exporting AI graphics processing units (GPUs) to the two Southeast Asian countries, according to a Bloomberg report .

The report, citing people familiar with the matter, stated that the new rule is still being finalized and may be subject to change. It also said the new rule will include some measures to ensure it does not disrupt the supply chain in Southeast Asia.

The report followed an interview with an unnamed senior State Department official, who told Reuters on June 23 that China's DeepSeek sought to use Southeast Asian shell companies to obtain high-end Nvidia chips, including H100 chips, which cannot be shipped to China under US rules.

Strategic decoupling

Reports since late June say the US has started easing its export controls for

electronic design automation (EDA) software,
engine parts used in China's C919 engines and
ethane products.

In return, Beijing has relaxed its export controls on key minerals for the US.

However, the de-escalation of the US-China trade war does not mean that Washington will stop its plan to push forward its strategic decouplin g from China.

Malaysia's Investment, Trade, and Industry Minister, Tengku Zafrul Aziz, was quoted by the Financial Times on March 23 as saying that the US had asked the Malaysian government to monitor every shipment of Nvidia chips that comes to Malaysia.

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