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Malaysia’s trade ministry is investigating whether AI chips imported by SpeedMatrix, the local unit of Singapore-based cloud computing firm Megaspeed, were further exported to other countries. The inquiry follows allegations that the company may have been used to circumvent US export controls on semiconductors.
The ministry said it was working with customs authorities to determine whether any chips brought into Malaysia had been shipped elsewhere and whether those transfers complied with Malaysian law. It stressed that it had never ‘cleared’ Megaspeed International Pte Ltd or SpeedMatrix.
SpeedMatrix, a tenant at Malaysian data centers, brought its own servers and AI chips into the country for its operations, the ministry said. Officials are checking whether any were re-exported and whether the shipments followed legal procedures.
Malaysia imposed export controls last year on the movement of high-performance artificial intelligence chips of US origin. A trade permit is required to re-export, transship, or transit such chips through Malaysia. The ministry said providing false information to customs about these goods is also an offense.
The ministry said visits to the companies’ local facilities were part of its regular monitoring of the data center sector, not government approval or clearance.
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Malaysia is working closely with authorities in Singapore and the United States and considering further measures to strengthen controls where necessary.
“While Malaysia does not enforce unilateral export controls imposed by other countries, all companies operating in Malaysia are expected to take such controls into account in their international business,” the ministry said. It added that it would take stern action against any company found to have broken Malaysian law.
Megaspeed and its subsidiaries came under scrutiny after reports that former NVIDIA CEO Jensen Huang had an affair with former Megaspeed executive Alice Huang, who is suspected by US authorities of spying for China. The reports have raised questions about chip movements through third countries.
No wrongdoing has been found. The ministry's investigation is focused on tracing chips brought into Malaysia and determining whether any re-exports complied with the law. The review will establish whether the chips stayed in Malaysia for Speedmatrix’s operations or were moved across borders.