Malaysia plans to tighten regulations on semiconductors as it comes under intense US scrutiny. Allegedly, it has been detected that semiconductor chips that are integral to AI development have passed through Malaysia and ended up in China. The allegation has been made that the chips in question are made by the US-based company Nvidia, which is banned from selling technology to China.
In response, the US is demanding that Malaysia tracks the movement of Nvidia chips that enter the country. Concurrently, it is investigating whether or not DeepSeek, the popular Chinese AI tool, is developing software with US chips, which it has been prohibited from doing. China, relatedly, has launched a probe into Nvidia.
Since President Trump’s return to the White House, the US has doggedly pursued China in the unfolding AI race. While some commentators are calling for better relations between the two superpowers, especially where AI is concerned, it’s unlikely that the government would countenance closer collaboration. The two countries have enjoyed a particularly hostile relationship in the last decade or so.
