US plans to restrict AI chip exports to Thailand and Malaysia over fears of re-routing to China
Washington eyes export curbs on Nvidia AI chips to Thailand and Malaysia to block China access, citing national security and technology control concerns.
The United States is planning to tighten export controls on advanced AI chips produced by American companies such as Nvidia, targeting Thailand and Malaysia over concerns that the chips could be illicitly rerouted to China, Bloomberg News reported on Friday.
A draft regulation being prepared by the US Department of Commerce aims to prevent China from acquiring cutting-edge AI technology through indirect channels via Southeast Asian countries. Although still under review and subject to change, the proposal highlights growing US efforts to seal potential loopholes in its technology export controls.
New AI export curbs in the pipeline
The Biden administration is particularly concerned that countries like Thailand and Malaysia may become “transit points” for advanced AI chips intended for restricted use in China.
At the same time, Washington is reportedly considering repealing its global “AI diffusion rule”, which governs the international spread of AI-related technologies. Despite this possible repeal, the US insists it will continue to strictly prohibit China from accessing advanced AI chips, under measures introduced in 2022 and extended in 2023 to cover more than 40 countries.
Neither the US Department of Commerce nor Nvidia has commented on the current plan, while government spokespersons from Thailand and Malaysia have also not issued any statements in response.
Chips for allies—on strict terms
Last month, US Treasury Secretary Howard Lutnick told Congress that while Washington would allow allies to purchase AI chips, these chips must be used through data centres approved by the US, and operated by US-certified cloud providers. This underscores America's intent to ensure full control and oversight over the usage and distribution of AI technologies.
The move is seen as part of Washington’s broader strategy to protect sensitive technologies while maintaining strategic dominance in AI development, particularly amid rising US-China tech tensions.
