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Last week, it was reported that the US was planning to restrict shipments of advanced AI chips to both Malaysia and Thailand after reports of smuggling cases to China surfaced.
According to TechCrunch, AI company Anthropic claimed that smugglers were going to extreme lengths to transport AI chips into China, including using prosthetic baby bumps filled with chips, and that smugglers were shipping GPUs alongside live lobsters.
Now, Malaysia has decidedly taken actions against those smuggling reports.
New Restrictions On All AI Chips of US Origin

“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 Strategic Trade Act (STA) 2010 or related laws,” the Ministry said.
Pacific Research Centre of Malaysia principal adviser Oh Ei Sun said the new restrictions would not affect local data center or AI development projects, as it concerns primarily the trans-shipment or export of US-made chips, and not their import into Malaysia for domestic use, Bernama reported.
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