KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
The US Justice Department has charged four individuals in an alleged scheme to illegally export Nvidia’s high-end AI chips to China — a case that has intensified calls in Washington for strict, end-to-end tracking of advanced semiconductors.
According to prosecutors, two US citizens and two Chinese nationals conspired to bypass export controls by funnelling Nvidia A100, H100 and H200 GPUs through Malaysia and Thailand using fake contracts and falsified paperwork. Authorities say the group successfully shipped 400 A100 GPUs into China between October 2024 and January 2025 before US law enforcement intercepted further attempts involving 10 supercomputers and dozens of top-tier GPUs.
Congress Pushes for Chip Security Act
The revelations prompted immediate political reaction.
John Moolenaar, chair of the US House Select Committee on China, urged Congress to quickly pass the bipartisan Chip Security Act, legislation he introduced earlier this year.
“China recognises the superiority of American AI innovation and will do whatever it must to catch up. That’s why this legislation is urgently needed,” Moolenaar said.
The bill would:
Require real-time location verification for advanced chips
Mandate reporting on suspected diversion attempts
Establish stricter compliance obligations for chipmakers and distributors
Explore additional mechanisms to stop US-designed chips from reaching China’s military ecosystem
The push underscores mounting US frustration with the ease at which restricted semiconductors can still enter China despite sweeping export bans.
How the Scheme Worked
Prosecutors say the defendants:
Used a Tampa-based company as a front to buy restricted GPUs
Shipped hardware to third countries to mask their final destination
Generated false documentation to avoid export-licence checks
Received nearly US$4 million in wire transfers from China to fund purchases
The indictment further highlights Malaysia and Thailand as increasingly common transit points for illicit chip flows.
Why It Matters
The case exposes the difficulty of enforcing the US’s expanding AI-chip export restrictions — rules designed to slow China’s military and supercomputing development while preserving the US lead in AI.
China has accused Washington of “weaponising trade,” but US officials warn that gaps in monitoring make current restrictions vulnerable.
Key Takeaways for Investors
AI chips remain the most sensitive tech battleground. Expect tighter compliance obligations for Nvidia, AMD and distributors.
Chip-tracking legislation could reshape global supply chains, increasing costs and paperwork for tech exporters.
Malaysia and Thailand may face higher scrutiny, especially for data-centre-related shipments.
US-China tech tensions will remain a long-term investment risk, affecting semiconductor, cloud, and AI-infrastructure names.
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