Business · Malaysia Bureau
Malaysia probes AI chip smuggling claims as Nvidia scandal widens
The Ministry of Investment, Trade and Industry is investigating whether companies linked to an alleged Nvidia chip scandal illegally re-exported semiconductors brought into Malaysia. The ministry said firms under scrutiny remain under investigation pending findings on the legality of any chip movements.
LSN Malaysia ·
Malaysia's Ministry of Investment, Trade and Industry (MITI) has launched an investigation into companies allegedly involved in an Nvidia chip smuggling operation, with authorities working to determine whether any semiconductors improperly entered the country were subsequently re-exported in violation of regulations.
The probe centres on establishing the origins and destinations of advanced AI chips, as well as whether any firms failed to comply with Malaysia's import and export control mechanisms. MITI indicated that companies connected to the scandal have not been cleared of wrongdoing as the investigation remains ongoing.
The ministry is examining whether chips brought into Malaysian territory, if any were smuggled in, were subsequently re-exported to destinations that contravene export control laws or US sanctions regimes governing advanced semiconductor technology.
The investigation underscores Malaysia's role as a regional hub for electronics manufacturing and the country's position in global semiconductor supply chains. Authorities have emphasised the importance of ensuring compliance with international trade regulations governing the distribution of restricted technology components.
No timeline for the completion of the investigation has been announced. MITI has not disclosed details of specific companies under investigation or the scale of alleged smuggling activities.