Penang chipmaker denies New York Times allegations of China shipments

Innospec, a Penang-based technology company, has firmly denied allegations that it improperly shipped artificial intelligence chips to China, describing the claims as untrue. The company issued the statement in response to reporting that raised concerns about the movement of advanced semiconductor components through its facilities.

According to Innospec, its business model operates on a customer-consignment basis. The company stated it only assembles products when materials are provided and consigned by its customers, a standard practice in the semiconductor contract manufacturing sector.

The denial underscores the heightened scrutiny surrounding semiconductor supply chains and potential compliance with international export controls. Malaysia's position as a regional hub for electronics manufacturing has drawn attention from regulators concerned about the movement of dual-use technology to sensitive markets.

Innospec's response comes as the semiconductor industry faces increasing pressure from Western governments seeking to prevent advanced chip technology from reaching certain destinations. The company did not provide additional details about its operational procedures or customer relationships in its statement.