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U.S. Steps Up Efforts to Stop Nvidia Chip Smuggling via Malaysia

March 25, 2025

Hey there! If you’ve been following the tech news, you might have heard about the U.S. stepping up its game to stop Nvidia chips from being smuggled into China through Malaysia. Despite the existing export controls, these high-tech semiconductors are still finding their way across borders, raising some eyebrows.

Malaysia’s Trade Minister, Zafrul Aziz, recently shared with the Financial Times that U.S. officials are pushing for more stringent monitoring of Nvidia chip shipments heading to Malaysia. This push has led Malaysia to set up a special task force to tighten the reins on its booming data center industry.

In just the last 18 months, Malaysia has become a hotspot for data centers, attracting over $25 billion in investments. This rapid growth has caught the attention of U.S. authorities, who are understandably cautious about any potential breaches in export regulations.

And it seems their concerns aren’t without merit. Just look at the recent arrests in Singapore, where nine people were nabbed for shady dealings involving servers packed with Nvidia chips.

 

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