U.S. Considers New Export Rules for AI GPUs to Malaysia and Thailand to Stem Smuggling to China

The U.S. government is reportedly planning to impose new export restrictions aimed at curbing the sale of advanced Nvidia AI GPUs to Malaysia and Thailand. According to Bloomberg, these rules are being developed to prevent the re-export of these powerful components to China, where existing bans are already in place. A preliminary version of the proposed rule indicates that the U.S. Commerce Department would require companies to secure a government-issued export license before sending AI GPUs to these two Southeast Asian nations. Although the plan has not been finalized and changes are possible, it could mark a further tightening of controls to limit Chinese access to high-performance Nvidia GPUs. Malaysia and Thailand are not considered major hubs for GPU smuggling compared to Singapore, which is officially listed as one of Nvidia’s primary sources of revenue. Despite this, there are concerns that GPUs sold to Singapore-based entities might be illicitly rerouted to China. Nvidia maintains that its AI GPUs sold to Singapore-based customers are intended for legitimate destinations and not for re-export to China or other sanctioned countries. However, many analysts believe that Singapore serves as a significant smuggling hub for these high-end GPUs. To stay updated on the latest developments in this area, follow Tom's Hardware on Google News. Be sure to click the Follow button to receive their news, analysis, and reviews in your feed.