KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Covert Monitoring of High-Risk Shipments
US authorities have been secretly placing location-tracking devices in certain shipments of advanced AI chips deemed at high risk of illegal diversion to China, Reuters reported, citing sources with direct knowledge. The trackers, concealed in packaging or even inside servers, aim to detect chips being rerouted to destinations under US export restrictions. These measures target select shipments already under investigation and are intended to build enforcement cases against individuals or companies violating export controls.
Application Across the AI Supply Chain
The practice has been observed in shipments from server makers such as Dell and Super Micro that include Nvidia and AMD chips. In some 2024 cases, both large smartphone-sized trackers and smaller hidden devices were reportedly used. Sources say the Bureau of Industry and Security (BIS) — which enforces export controls — often leads the effort, with Homeland Security Investigations (HSI) and the FBI also involved.
China Shipments Under Scrutiny
The US has restricted sales of advanced AI chips from companies like Nvidia and AMD to China since 2022, citing national security and military concerns. While the Trump administration has eased some curbs, the use of trackers underscores Washington’s determination to monitor compliance. Shipments to Russia are also restricted for geopolitical reasons. Recent proposals in Washington would mandate location-verification technology in chips to prevent diversion to restricted markets.
China’s Response and Industry Reaction
China’s cyberspace regulator has previously voiced concerns about potential “backdoors” in chips, allegations denied by US manufacturers. Dell said it was not aware of any US government tracking initiative in its shipments; Nvidia stated it does not install such devices; AMD declined to comment. Some China-based resellers acknowledged routinely inspecting shipments for trackers before reselling.
Historical Context
The use of tracking devices in export enforcement is not new — dating back to at least the 1980s — but its deployment in the AI chip trade reflects the sector’s strategic importance. Legal procedures vary, with some tracker installations requiring judicial warrants, enabling data to be used as evidence in criminal cases.
This latest measure adds a covert enforcement layer to the US–China tech rivalry, signaling that even as some restrictions are relaxed, Washington is actively policing AI chip flows to maintain its technological edge.
Comments
Post a Comment