Malaysia says trade permit required for AI chips of U.S. origin
An Advanced Micro Devices (AMD) MI350 series artificial intelligence chip is displayed at the San Jose McEnery Convention Center, in San Jose, California, U.S., June 12, 2025. REUTERS/Max A. Cherney/File Photo Purchase Licensing Rights, opens new tab
KUALA LUMPUR, July 14 (Reuters) - Malaysia's trade ministry said on Monday that the export, transshipment and transit of high-performance artificial intelligence chips of U.S. origin will be subject to a trade permit, effective immediately.
Individuals or companies are required to notify authorities at least 30 days in advance when exporting, transhipping, or bringing in transit any item that is not expressly listed on Malaysia's strategic items list, the ministry said in a statement.
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The move serves to close regulatory gaps while Malaysia reviews the inclusion of high-performance AI chips of U.S. origin in its list of strategic items, the ministry added.
"Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities by any individual or company, who will face strict legal action if found violating the laws."
The southeast Asian country has been working to tighten regulations on semiconductors as it comes under pressure from the United States to staunch the flow to China of chips crucial to the development of AI, the Financial Times reported in March.
Malaysia was also investigating if local laws were breached in the shipment of servers linked to a Singapore fraud case, as they may have contained advanced chips subject to U.S. export controls.
(This story has been refiled to fix a format error in paragraph 6)
Reporting by Danial Azhar; Editing by David Stanway
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