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Malaysia Investigates Chinese Firm’s Use of Nvidia AI Chips Amid Export Controls

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Malaysia’s trade ministry is currently investigating reports that a Chinese company operating in the country is using Nvidia AI chips and servers for training large language models, according to a ministry statement on Wednesday. The inquiry aims to determine if any domestic laws or regulations have been violated.

The Wall Street Journal previously reported that Chinese engineers arrived in Malaysia in early March carrying suitcases filled with hard drives. They were reportedly working to develop AI models using data centers equipped with Nvidia chips.

These developments come against the backdrop of U.S. restrictions on exports of advanced AI chips, introduced during the Biden administration, which capped the number of AI chips Malaysia could receive. Though the Trump administration later rescinded these curbs, it issued guidance emphasizing licensing requirements if AI chip use is linked to weapons of mass destruction.

Malaysia’s ongoing verification reflects growing global scrutiny over technology transfer and AI development involving Chinese entities.

Malaysia Denies Government Role in AI Project Involving Huawei Ascend Chips

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Malaysia’s Ministry of Investment, Trade and Industry (MITI) has officially clarified that the government is not involved in a reported artificial intelligence project using Huawei’s Ascend chips, distancing itself from earlier reports suggesting official backing.

The clarification follows local media coverage on Monday that claimed Malaysian firm Skyvast Corporation would deploy Huawei’s Ascend AI chips in a domestic initiative. In response, MITI stated the project “was not developed, endorsed, or coordinated by the Government of Malaysia, nor does it form part of any Government-to-Government agreement or nationally mandated technology programme.”

Huawei, for its part, told Reuters that it has not sold any Ascend chips in Malaysia, and that the Malaysian government has made no such purchases. The Chinese tech giant developed the Ascend line after being cut off from U.S. suppliers, positioning the chips as domestic alternatives amid Washington’s escalating export restrictions on advanced semiconductors, particularly from Nvidia.

The Malaysian ministry also reaffirmed its commitment to complying with international export control laws, national security regulations, and guidance from global regulatory bodies. The statement appears aimed at avoiding diplomatic friction amid growing U.S. scrutiny over AI-related tech flows involving China.

Skyvast Corporation has not responded to requests for comment.

The backtracking highlights the sensitivity of semiconductor and AI technology partnerships in the current geopolitical climate, especially as countries weigh alignment with U.S.-led technology sanctions while maintaining ties with Chinese tech firms.

Indonesia Approves Permits for Five Apple iPhone 16 Models

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Indonesia’s communications ministry has granted telecommunications permits for five models of Apple’s upcoming iPhone 16, marking a significant step towards lifting a previous domestic sales ban. This move follows the issuance of local content certificates for 20 Apple products, including the iPhone 16, last week. However, Apple still requires an import permit from the trade ministry to begin selling the devices locally, according to Indonesia’s industry ministry.

The Indonesian government had previously banned iPhone 16 sales last year, citing Apple’s failure to meet local content requirements, which mandate that products contain a certain percentage of locally manufactured parts. This decision had raised concerns about potential protectionism and its impact on investor confidence in the country.

The five telecommunications certificates cover the following iPhone 16 models: iPhone 16e, iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. The issuance of these permits comes shortly after Apple announced more than $300 million in investments in Indonesia, which will fund the construction of plants for manufacturing components and the development of a research and development center.

Apple has not yet responded to requests for comment regarding the permits. However, Dwi Handoko, a senior official from Indonesia’s communications ministry, confirmed that the five permits were issued at Apple’s request.