The United States puts Malaysia under pressure to stop potentially illegal exports from Nvidia chips to China. Does the tech conflict continue to escalate?
• USA are calling for stricter controls for Nvidia chips in Malaysia
• Singapore examines illegal chip exports to China
• Trade conflicts are topical
The geopolitical tensions between the USA and China are increasing for advanced semiconductor technologies. Now Malaysia is targeted by Washington. The Southeast Asian country is considered an important transshipment point for high-end chips from Nvidia-and possibly as a loophole for its forwarding to China.
Checks for Nvidia chips: Why Malaysia is targeted
According to Malaysia’s Minister of Commerce Zafrul Aziz, the United States has called for specific controls for Nvidia high-end chips because they are of strategic importance for artificial intelligence and possibly military applications. The United States “demands that we monitor any delivery to Malaysia when it affects Nvidia chips,” said Zafrul from Financial Times. “You want us to make sure that servers end up in the data centers for which you are intended and not suddenly be reloaded to another ship,” he added.
The United States fears that middlemen in Malaysia and other Southeast Asian countries could be a back door for Chinese companies in order to get advanced chips despite trading restrictions.
Secret chip deals: Singapore as a hotspot illegal exports?
Zafrul Aziz emphasized to Financial Times that the enforcement of stricter export controls was a challenge. “The United States also put great pressure on its own companies to ensure that the goods get to its rightful destination,” he said. “Everyone is asked to play a role in the entire supply chain. […] The enforcement may just sound, but it is not, “he added.
In parallel to the measures in Malaysia, studies in Singapore are also underway. According to media reports, several people have already been arrested in connection with the illegal overload of servers that contain Nvidia chips. The judiciary assumes a $ 390 million fraud, as reported by Reuters, in which Dell and Super Micro server are said to have been sold to China with Nvidia components.
Malaysia has developed into a hotspot for data center investments in recent years. In the past few months, large billions of billions, including from companies such as Nvidia and Microsoft, have flowed into the location of Joor, who is connected to Singapore via dams. At the end of January 2025, however, an NVIDIA spokesman told Investing.com that the high sales associated with Singapore do not indicate a detour to China: “We insist that our partners comply with all the laws that are applicable, and if we receive the opposite information, we act accordingly”.
Nvidia share under pressure: Consequences for global chip trade
The measures against Malaysia are part of a more comprehensive US strategy to control China’s technological rise. The increased export controls could have far-reaching consequences for the global chip market and in particular influence trade relationships between Malaysia, the USA and China. The Nvidia share could also suffer from the trade conflicts. The titles were recently under pressure and lost more than 18 percent since the beginning of the year (as of March 28, 2025).
Editor finance.net
By the way: Dell Technologies and other US shares are even tradable at Finance.net Zero until 11 p.m. (without order fees, plus spreads). Open Depot now for free And receive a free stock as a gift.
Selected leverage products on Dell Technologies
With knock-outs, speculative investors can participate disproportionately in price movements. Simply choose the desired lever and we will show you suitable open-end products on Dell Technologies
The lever must be between 2 and 20
Advertising