US plans AI chip curbs on Malaysia, Thailand over China concerns
A draft rule from the Commerce Department seeks to prevent China — to which the US has effectively banned sales of Nvidia's advanced AI processors — from obtaining those components through intermediaries in the two Southeast Asian nations, according to people familiar with the matter. The rule is not yet finalised and could still change, said the people, who requested anonymity to discuss private conversations.
Officials plan to pair the Malaysia and Thailand controls with a formal rescission of global curbs from the so-called AI diffusion rule, the people said. That framework from the end of President Joe Biden's term drew objections from US allies and tech companies, including Nvidia. Washington would maintain semiconductor restrictions targeting China — imposed in 2022 and ramped up several times since — as well as more than 40 other countries covered by a 2023 measure, which Biden officials designed to address smuggling concerns and increase visibility into key markets.
All told, the regulation would mark the first formal step in Trump's promised overhaul of his predecessor's AI diffusion approach — after the Commerce Department said in May that it would supplant that Biden rule with its own 'bold, inclusive strategy.'
But the draft measure is far from a comprehensive replacement, the people said. It doesn't answer, for example, questions about security conditions for the use of US chips in overseas data centres — a debate with particularly high stakes for the Middle East.
It's unclear whether Trump officials may ultimately regulate AI chip shipments to a wider swath of countries, beyond the Malaysia and Thailand additions.
The Commerce Department didn't respond to a request for comment. The agency has offered few specifics about its regulatory vision beyond what Secretary Howard Lutnick told lawmakers last month: The US will 'allow our allies to buy AI chips, provided they're run by an approved American data centre operator, and the cloud that touches that data center is an approved American operator,' he said during congressional testimony.
Nvidia, the dominant maker of AI chips, declined to comment, while spokespeople for the Thai and Malaysian governments didn't respond. Nvidia Chief Executive Officer Jensen Huang has previously said there's 'no evidence' of AI chip diversion, in general remarks that didn't touch on any particular country.
In response to earlier Bloomberg queries about curbs focused on smuggling risks, Thailand said it's awaiting details, while Malaysia's Ministry of Investment, Trade and Industry said clear and consistent policies are essential for the tech sector.
Washington officials for years have debated which countries should be able to import American AI chips — and under what conditions. On one hand, the world wants Nvidia hardware, and US policymakers want the world to build AI systems using American technology — before China can offer a compelling alternative. On the other, once those semiconductors leave American and allied shores, US officials worry the chips could somehow make their way to China, or that Chinese AI companies could benefit from remote access to data centers outside the Asian country.
Southeast Asia is a key focus. Companies including Oracle Corp are investing aggressively in data centres in Malaysia, and trade data shows that chip shipments there have surged in recent months. Under pressure from Washington, Malaysian officials have pledged to closely scrutinise those imports, but the Commerce Department's draft rule indicates the US still has concerns.
Semiconductor sales to Malaysia also are a focal point of a court case in neighboring Singapore, where prosecutors have charged three men with defrauding customers about the ultimate destination of AI servers — originally shipped from the island nation to Malaysia — that may have contained advanced Nvidia chips. (Nvidia is not the subject of Singapore's investigation and has not been accused of any wrongdoing.
The export curbs on Malaysia and Thailand would include several measures to ease pressure on companies with significant business operations there, people familiar with the matter said.
One provision would allow firms headquartered in the US and a few dozen friendly nations to continue shipping AI chips to both countries, without seeking a license, for a few months after the rule is published, people familiar with the matter said.
The license requirements also would still include certain exemptions to prevent supply chain disruptions, the people said.
Many semiconductor companies rely on Southeast Asian facilities for crucial manufacturing steps like packaging, the process of encasing chips for use in devices.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bangkok Post
35 minutes ago
- Bangkok Post
Rethinking what it means to be human
In the decades ahead, Thailand will not collapse in a blaze of war, disease, or climate catastrophe. Rather, it will quietly wither from within. The twin forces of demographic decline and digital automation are converging with astonishing speed, and yet our political and moral imaginations remain unprepared. Today, Thailand's population is some 66 million. However, by 2055, that number is expected to decrease to just under 48 million, with the elderly accounting for nearly 30 percent of the population. Fertility rates are falling rapidly, a trend accelerated by rising socioeconomic pressures, shifting gender norms, and the increasing visibility and acceptance of LGBTQ communities. While the latter represents a human rights victory, it also contributes to fewer individuals pursuing a traditional family structure involving reproduction. At the same time, the proportion of one-child families continues to rise. Fewer children means fewer siblings. And fewer siblings means fewer chances to learn some of life's most essential values, such as sharing, sacrifice, and care. These virtues, once passed down within households, are becoming rarer in an age of solitude and individualism. The family, once the cornerstone of society, is gradually being dismantled not by state decree but by a quiet societal evolution. Perhaps the greatest tragedy in this transformation will befall our elderly. In traditional Thai society, grandparents once lived for the joy of watching their grandchildren grow, love, and flourish. Many would say that the love one feels for a grandchild surpasses even the love one feels for one's children, particularly in the twilight of life. But for tomorrow's elderly, there may be no grandchildren. Instead, there will be loneliness, and with it, the slow erosion of emotional well-being, cultural memory, and inter-generational solidarity. While humans drift apart, machines are drawing closer. Robots and artificial intelligence are evolving not just to perform physical labour, but to mimic emotional and cognitive tasks. They are learning our language, our gestures, even our moral codes. By 2055, machines are expected to have replaced humans in many domains of work, including manufacturing and logistics, as well as education, finance, and possibly even caregiving. When that day comes, what will happen to employment? Work, as we know it, may become obsolete for the majority of the population. If robots and algorithms can do the job better, faster, and cheaper, then who will hire a human? And if fewer people are working, how will they earn a living? We will need a new economic theory, one no longer based on land ownership, labour, or even the mode of production, but on the ownership of machines and digital know-how. Those who own or control the technology will control the wealth. Human capital -- once the engines of national development -- will become secondary. Land, once a symbol of wealth and stability, will hold diminishing relevance. And wages, the cornerstone of the modern social contract, may disappear. This upcoming order will not only change economics; it will also reshape politics. Politicians of the future will not be judged by job creation but by how fairly they redistribute the enormous wealth generated by machines. In the best-case scenario, they will use their power to create an inclusive society. In the worst case, they will become gatekeepers of privilege, doling out access and survival to the chosen few. Either way, democracy itself may be redefined. And yet, the greatest paradox is this: as humans become more robotic in their emotional detachment, robots are becoming more human, at least in appearance. Humans are becoming increasingly like robots, and robots are becoming more like humans. What still separates them is emotion, empathy, compassion, and our love for humanity -- qualities we must preserve and pass on, not programme or simulate. Advanced robots and AI systems can simulate empathy, express affection, and adhere to ethical algorithms. But these expressions are programmed, not felt. They do not feel joy, sorrow, regret, or love. They do not cry when someone dies. Human professionals, especially doctors, still do. A good doctor is not just trained to heal; they are deeply affected by the pain, progress, and sometimes the death of their patients. Their joy comes not from control, but from compassion. In contrast, many computer scientists are taught to optimise, to solve, to control. Their greatest pride lies in designing systems that respond precisely to commands. But that very genius has laid the groundwork for harm. It is computer scientists, not doctors, who inadvertently gave rise to scammers, hackers, and surveillance states. No doctor has ever created a virus to infect people in order to profit from the cure. But the digital world is full of such incentives. This is why we must urgently rethink what it means to be human and what kind of future we are creating. A sense of ethics, empathy, and understanding is not optional: it lies at the heart of our humanity. Thailand must begin preparing its future computer scientists, not merely as technical experts, but as moral agents who bear responsibility for the tools they create. They must be equipped to think deeply about the human condition and the consequences of automation. If we do not act, the next generation may be richer in technology but poorer in relationships, culture, and meaning. The machines will not revolt. But society might, when millions are jobless, rootless, and purposeless. To prepare, we must first redefine employment, not as a mere requirement for survival, but as a right to make meaningful contributions. We must consider a universal basic income, not as charity but as a dividend of shared technological productivity. We must reform education, not only to teach science and coding, but also to make schools and universities nurturing grounds for self-discipline, ethics, and empathy. These institutions must go beyond producing skilled workers; they must shape responsible and caring citizens. And most urgently, we must legislate and regulate the boundaries of technological power. Robots may become better than us at everything -- except being human. That is something we must never outsource.
Bangkok Post
36 minutes ago
- Bangkok Post
Delay likely so that new cabinet can review bill
The controversial entertainment complex bill needs to be reviewed by the newly formed cabinet before proceeding with it further, Deputy Finance Minister Julapun Amornvivat said. Speaking at a forum hosted by the Press Council of Thailand to mark its 28th anniversary on Friday, Mr Julapun said government whips and cabinet representatives have discussed the possibility of delaying the bill for a thorough review by the new ministers. He dismissed speculation that the bill's fate was tied to the recent withdrawal of the Bhumjaithai Party (BJT) from the coalition, saying the coalition still commands a majority that is enough to secure its passage. However, Mr Julapun noted that due to the major cabinet reshuffle, fresh input from the new ministers on the highly contentious issue is welcome. There are also calls for the government to first address ongoing Thai-Cambodian border tensions, he added. According to the minister, the formal withdrawal of the bill typically requires a resolution by the cabinet, and the bill could be withdrawn immediately if the House raises no objections. Mr Julapun admitted that the opposition might push for deliberation and vote the bill down. "But the government is confident it has sufficient support to either delay deliberation or withdraw the bill for review," he said. The bill, which seeks to establish integrated entertainment complexes that include casinos, was originally scheduled to be the first item on the House agenda on July 9. It was to be followed by four other bills related to social harmony and political amnesty. Mr Julapun also dismissed any connection between the government's casino policy and Cambodian Senate President Hun Sen's recent criticism of Thailand, saying the decision to delay it is primarily to allow for further review and ease political tensions. Visuth Chainaroon, the chief government whip, yesterday echoed the need for its withdrawal, citing the coalition's slim majority and an unfavourable political climate. He said he discussed the matter with Prime Minister's Office Minister Chusak Sirinil, and both agreed that a postponement could still intensify public pressure, making a full withdrawal the better course of action. "If the new cabinet is ready, it can resubmit the bill. But it must engage with the public first, as this bill has wide-ranging repercussions," he said.
Bangkok Post
36 minutes ago
- Bangkok Post
Rumour illegal 'cop cards' rampant among migrants
The opposition People's Party (PP) has asked the Department of Special Investigation (DSI) to probe illegal "police cards" issued to undocumented migrants, alleging collusion by officials in a multi-billion-baht crime network in Mae Sot in northwestern Tak province. PP deputy leader Wiroj Lakkhanaadisorn and Tak MP Ratchapong Soisuwan submitted the request yesterday, urging the DSI to treat the matter as a special case under the 2004 Special Case Investigation Act due to its scale, transnational nature and potential national security implications. The so-called "police cards" are unofficial documents reportedly issued by influential groups with state backing, allowing undocumented migrants to avoid arrest by paying a monthly fee of 600 baht. The scheme is said to generate 3–4 billion baht annually, he said. "This is an organised system of extortion involving some state officials," Mr Wiroj said. "It undermines the rule of law, deprives the state of revenue, and leaves local communities underserved." According to the petition, extortion extends to small businesses and informal migrant workers. Fees are collected monthly from illegal migrant workers who want to be vendors, or rent electric bikes, and others, while Thai nationals are allegedly used as proxies to register assets and businesses on behalf of foreigners. The report warns that Mae Sot has become a hub for transnational crime, including human trafficking, drug smuggling and illegal financial services, with proceeds flowing through layered networks tied to corrupt officials. Mr Ratchapong said the complaint reflects growing frustration among residents over law enforcement failures and abuse of power. He pledged to find and submit further evidence to the DSI. An estimated 140,000 of 200,000 migrants in Mae Sot are believed to be undocumented. If each is subject to the 600-baht monthly fee, illegal revenue from the card scheme could exceed 1 billion baht annually, he noted.
