Malaysia has stated that it will take appropriate action if any of its companies are found to be involved in a fraud case concerning the alleged movement of Nvidia chips from Singapore to China.
This follows remarks by Singapore’s Minister for Law and Home Affairs, K. Shanmugam, who indicated that servers linked to the case may have contained Nvidia’s artificial intelligence chips and were subsequently sent to Malaysia.
On February 27, Singapore charged three individuals with fraud in connection to the case. According to reports from local broadcaster CNA, the case is linked to the movement of Nvidia chips.
Ongoing Investigations in Malaysia
Malaysia’s Minister of Investment, Trade, and Industry, Tengku Zafrul Aziz, addressed the issue during an interview with CNBC’s Squawk Box Asia. He stated that, at present, there is no evidence that data center companies operating in Malaysia are misusing the chips.
He explained that such servers are typically imported by multinational firms, including Microsoft, AWS, and Google. Malaysian authorities are currently engaging with these companies to verify that the chips have reached their intended recipients.
Singapore’s Perspective on the Issue
Minister Shanmugam noted that the chips in question were embedded in servers supplied by Dell and Supermicro to Singapore-based firms before being sent to Malaysia. He suggested there may have been misrepresentation regarding the servers’ final destination.
When asked whether Malaysian authorities knew where the servers are now, Tengku Zafrul responded that investigations are ongoing. He confirmed that discussions with Singaporean officials and data center operators are taking place to ensure compliance with regulations.
Wider Context of AI Chip Shipments
The case emerges amid broader concerns about AI chip shipments. In January, Reuters reported that the U.S. Commerce Department was investigating whether Chinese AI startup DeepSeek had acquired restricted U.S. chips. The report also suggested that unauthorized AI chip shipments have been tracked from multiple countries, including Malaysia, Singapore, and the United Arab Emirates.
Tengku Zafrul emphasized that Malaysia is reviewing the matter and assessing the chips’ final destinations. However, he clarified that “the chips are not meant to be in Malaysia in the first place,” adding that authorities are examining how they were routed from Singapore.
Authorities in both Malaysia and Singapore have pledged to continue investigating the issue and take necessary action where required.
Find the best supply chain logistics news at The Supply Chain Report. Free international trade tools are available at ADAMftd.com.
#Malaysia #TradeFraud #Nvidia #ChipScandal #SupplyChain #RegulatoryAction #TechIndustry
