KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
At least US$1 billion worth of banned Nvidia AI chips have reportedly made their way into China through unauthorized channels in the months following tighter U.S. export restrictions, according to the Financial Times. The smuggled chips include high-end B200 processors, which are barred from sale in China under U.S. national security controls.
Key Highlights:
Banned but available: Despite restrictions, Nvidia’s B200, H100, and H200 chips are widely available in China’s gray market, with multiple distributors from Guangdong, Zhejiang, and Anhui provinces involved.
Black market surge: The chips reportedly surfaced in May and were sold to data center suppliers serving Chinese AI firms, even as U.S. policy aimed to cut China off from advanced AI hardware.
Southeast Asia's role: Countries in Southeast Asia, including Thailand, have become key transit points for these restricted chips, according to industry sources.
Nvidia Responds
Nvidia acknowledged the issue and told Reuters that building data centers with unauthorized or smuggled chips is inefficient and unsupported, as it does not offer technical service or warranties for such products.
U.S. and China in Tech Tug-of-War
This comes as the U.S. and China battle for dominance in artificial intelligence and advanced tech. The U.S. has imposed a series of export restrictions to prevent China from gaining access to AI-enabling hardware, citing national security concerns.
Earlier restrictions: In April, the U.S. banned sales of Nvidia’s most advanced chips to China.
Policy reversal: Last week, the Trump administration partially reversed the ban, allowing resumed sales of chips like H20—but not B200.
What’s Next?
The U.S. Commerce Department is now reviewing whether to impose additional export controls on AI chips heading to countries like Thailand, possibly as early as September.
The White House and Commerce Department have not yet commented on the report.
Conclusion & Key Takeaways:
Despite U.S. export controls, over $1 billion in Nvidia AI chips entered China via unauthorized routes, undermining policy efforts.
China’s demand for high-end AI hardware remains strong, with a thriving black market and sourcing via Southeast Asia.
Nvidia is caught in the middle, trying to comply with U.S. laws while navigating global demand.
Tighter export rules may be coming, potentially extending beyond China to third-party markets like Thailand.
Bottom line: U.S. chip controls may be facing enforcement challenges, and the global tech supply chain continues to find ways around barriers—raising questions about the effectiveness and reach of current policies.
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