The United States has announced new restrictions on the export of advanced artificial intelligence (AI) chips to Malaysia. As a result, Malaysia has been placed in a category with limited access to high-performance computing power.
The move, confirmed by US Commerce Secretary Gina Raimondo, aims to maintain American dominance in AI technology by controlling the flow of critical components. President Biden’s directive categorises countries into three tiers, with varying levels of chip access.
US Curbs AI Chip Exports to Malaysia
Tier 1, comprising close allies like Japan, Taiwan, the UK, and Australia, enjoys unrestricted access. Malaysia falls under Tier 2, alongside Singapore, Israel, and the UAE, where access is limited based on the country’s overall computing power. Tier 3, encompassing adversarial nations such as Russia, China, and Iran, is entirely barred from accessing US-developed chips.
While the restrictions may seem concerning for Malaysia’s aspirations as a regional data centre hub, the US has granted exceptions to major cloud providers like Microsoft, Google, and Amazon. These companies are permitted to establish AI data centres in Malaysia without limitations on their computing power.
However, US-based companies face restrictions on their global computing infrastructure. They are limited to placing only 50% of their computing power overseas. Of this, no more than 25% can be placed in Tier 1 countries. Additionally, the maximum allowed in Tier 2 countries is 7%.
This move by the US government is a direct response to China’s efforts to circumvent previous AI chip export restrictions by leveraging cloud computing services in the Asian region.
The announcement has drawn immediate criticism from the tech industry. NVIDIA, a top AI chip manufacturer, criticised the move, calling it “out of bounds.” Specifically, the company argued that it limits technology already widespread in gaming computers and consumer devices. Meanwhile, Oracle, another major tech company, also voiced concerns. It warned that the order could, consequently, speed up the adoption of Chinese-made AI and GPU chips, which might, in turn, harm American businesses in the long run.
The implications of these new restrictions on Malaysia’s tech industry and its data centre ambitions remain to be seen. For more news like this, stay tuned to us at Adam Lobo TV.
