Source: South China Morning Post

South China Morning Post reports that the Trump administration is preparing to restrict shipments of advanced AI chips, particularly Nvidia processors, to Malaysia and Thailand. This move is part of a broader US effort to prevent China from obtaining cutting-edge semiconductor technology through intermediaries in Southeast Asia.

The draft rule from the US Commerce Department aims to close suspected backdoors for smuggling into China, where direct sales of Nvidia’s advanced AI chips are banned. The regulation would mark a first step in overhauling previous AI diffusion rules established under the Biden administration. While the draft is not finalized, it reflects growing US concerns over semiconductor supply chain security and technological competition with China. Both Malaysia and Thailand have expressed the need for clear policies amid the evolving regulatory landscape.