According to informed sources, the US Department of Commerce is drafting a rule that plans to restrict companies such as Nvidia from exporting artificial intelligence (AI) chips to Malaysia and Thailand.
Insiders say that officials plan to combine the control measures in Malaysia and Thailand with the formal lifting of global restrictions on the so-called "AI diffusion rules". The framework was introduced towards the end of President Joe Biden's term, sparking opposition from American allies and technology companies including Nvidia.
The new regulations will mark the first step in Trump's commitment to a comprehensive reform of his predecessor's artificial intelligence promotion strategy. But insiders say that this draft is far from a comprehensive alternative. For example, it did not answer questions about the security conditions for the use of American chips in overseas data centers, which is particularly important for the Middle East region. It is currently unclear whether the Trump administration will ultimately regulate the export of artificial intelligence chips to more countries/regions besides Malaysia and Thailand.
Nvidia, the main manufacturer of artificial intelligence chips, declined to comment, and spokespersons for the governments of Thailand and Malaysia did not respond. Nvidia CEO Huang Renxun previously stated that there is "no evidence" to suggest the transfer of artificial intelligence chips, but this is only a general statement and does not mention any specific country.
For years, officials in Washington have debated which countries should be able to import American AI chips - and under what conditions. On the one hand, the world needs Nvidia's hardware, and US policymakers hope that the world can use American technology to build artificial intelligence systems - before China can provide convincing alternatives. On the other hand, once these semiconductors leave the United States and its allies, American officials fear that these chips may flow into China in some way, or Chinese AI companies may benefit from remote access to data centers outside Asian countries.
Southeast Asia is a key area of focus. Several companies, including Oracle, are investing heavily in data centers in Malaysia, with trade data showing a surge in chip shipments in recent months. Under pressure from Washington, Malaysian officials have promised to closely review these imported products, but the draft rules from the US Department of Commerce indicate that the US still has concerns.
According to informed sources, the licensing requirements will still include certain exemptions to prevent supply chain disruptions. Many semiconductor companies rely on factories in Southeast Asia for critical manufacturing steps, such as packaging.
