Economy Chaos Looms as US Eyes AI Chip Export Curbs to Thailand, Malaysia

[webfact]

File photo courtesy of Wikipedia

 

The US government is reportedly planning to impose restrictions on AI chip exports from companies like Nvidia to Malaysia and Thailand.

 

This move, driven by concerns over semiconductor smuggling into China, aims to prevent China from acquiring these advanced components through intermediaries in Southeast Asia.

 

According to sources, a draft rule from the US Commerce Department seeks to add Malaysia and Thailand to the list of countries with imposed controls.

 

These new restrictions are to supplement existing measures targeting China and over 40 other nations. The regulations are part of an ongoing effort to tackle smuggling and increase market transparency.

 

The proposed rule follows the Trump administration's aim to refine the AI diffusion strategy put in place during President Joe Biden's term. Although not comprehensive, the draft attempts to address security conditions related to US chips used in international data centres.

 

The focus remains sharp on Malaysia and Thailand as the US evaluates its next steps for broader enforcement.

 

Despite the ongoing situation, the final framework is yet to be confirmed, with potential adjustments anticipated. The US Commerce Department and relevant stakeholders, including Nvidia, have remained largely mum on the specifics of the plan.

 

Malaysian and Thai officials have expressed a desire for clear policies to guide the tech sector amidst these changes.

 

The new export controls are likely to be accompanied by temporary exemptions for companies with significant operations in Malaysia and Thailand.

 

This would allow them to continue chip shipments without acquiring licenses for a limited period, aiming to ease immediate disruptions.

 

As global demand for Nvidia's AI technology remains high, the US continues to navigate the delicate balance between fostering international AI development and maintaining stringent controls to restrict Chinese access.

 

This development underscores Southeast Asia's critical role as a focal point in the global semiconductor supply chain and the broader geopolitical landscape.

 

  Adapted by ASEAN Now from Bangkok Post 2025-07-05

 

 

[norsurin]

Next week US will impose VAT 36,% for thai export i guess.

[Yagoda]

good. 

[watchcat]

2 hours ago, norsurin said:

Next week US will impose VAT 36,% for thai export i guess.

 

AI should be abolished!

[connda]

3 hours ago, webfact said:

The US government is reportedly planning to impose restrictions on AI chip exports from companies like Nvidia to Malaysia and Thailand.

(Looks at the "Made in Malaysia" tag on chips on the IC board)

Yeah - that will be humorous when the chips and chip components from Malaysia stop being exported to the US.  Thailand?  Well, what leverage does Thailand have over the US, unlike Malaysia?