The Trump administration is planning AI chip restrictions on Malaysia and Thailand in an attempt to halt chip shipments from the two countries to China, according to Bloomberg.
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The U.S. has banned the sale of advanced Nvidia (NVDA) chips to China, although President Trump seeks to further quell the smuggling of these chips from Southeast Asian countries to Beijing. This move would represent Trump’s first step in implementing a new AI chip export policy after he decided to revoke former President Biden’s AI Diffusion rule.
New AI Chip Restrictions Likely to Hike Tensions
The curbs will likely stir tensions with China after the two sides sealed a trade agreement last month. They also mark a stark change in U.S. sentiment after lifting export curbs on domestic chip-design software companies to China earlier this week, benefiting Synopsys (SNPS) and Cadence Design Systems (CDNS).
China has not yet issued a response to Trump’s planned AI chip restrictions.
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