Malaysia probes Nvidia chip diversion claims since April 2025

Malaysian police have been investigating since April 2025 allegations that the country was used to circumvent US export restrictions on Nvidia AI chips, Home Minister Saifuddin Nasution Ismail confirmed Saturday. The probe focuses on whether Malaysia served as a transit hub for advanced chips. The investigation, conducted under the Strategic Trade Act 2010, follows US allegations involving proxy companies and illicit procurement. It is led by the Investment, Trade and Industry Ministry, involving police, Bank Negara Malaysia, the Inland Revenue Board, MCMC and Customs. Saifuddin declined to say whether evidence substantiating the allegations has been found. The scrutiny centers on Singapore-based Megaspeed International and its Malaysian subsidiary Speedmatrix, which reportedly purchased US$4.8 billion worth of Nvidia chips. Both companies deny wrongdoing. Malaysia imposed strategic trade permit requirements for high-performance AI chip exports in July 2025, though Prime Minister Anwar Ibrahim said no evidence shows chips were exported from Malaysia.