Energy & Technology

The administration of former President Donald Trump is preparing new restrictions on the export of artificial intelligence chips to Malaysia and Thailand, in a move aimed at curbing the illicit flow of advanced semiconductors to China. According to individuals familiar with the matter, the US Commerce Department has drafted a rule that would prohibit the shipment of advanced AI processors—such as those produced by Nvidia Corporation—to the two Southeast Asian nations. The proposal forms part of a broader strategy to block Chinese access to cutting-edge US technology through third-country intermediaries. Although the regulation remains in draft form and could be revised prior to implementation, sources have indicated that it would be the first formal step in Trump’s promised overhaul of President Joe Biden’s AI diffusion policy. The Biden-era framework, introduced near the end of his term, drew significant criticism from both international allies and leading technology firms, including Nvidia. The proposed changes will include a formal repeal of the global AI diffusion rule while retaining and reinforcing existing restrictions. Measures targeting China, imposed in 2022 and expanded in 2023 to over 40 jurisdictions, are expected to remain in place. These rules were designed to prevent smuggling and enhance oversight of key markets. Despite the shift in regulatory approach, insiders suggest that the draft rule is not yet a comprehensive replacement for the previous framework. It notably does not address lingering questions regarding the security protocols surrounding US chip usage in overseas data centres—an issue with significant implications for the Middle East. It is also unclear whether additional countries could be included under the Trump administration’s revised export controls at a later stage. The US Commerce Department has not commented publicly on the draft rule. However, Secretary Howard Lutnick told Congress in June that the administration intends to permit AI chip exports to allies, provided the chips are operated by “an approved American data centre operator” and within “an approved American cloud infrastructure”. Nvidia, the global leader in AI chip manufacturing, declined to comment. Likewise, officials from the Thai and Malaysian governments have yet to respond. Nvidia CEO Jensen Huang has previously stated that there is “no evidence” of AI chip diversion, although his remarks were not directed at any specific country. Earlier this year, Malaysia’s Ministry of Investment, Trade and Industry stressed the importance of “clear and consistent policies” for the technology sector, while Thai officials said they were awaiting further details on the proposed restrictions. Washington’s longstanding concern has centred around the possibility that AI chips exported abroad might find their way into Chinese hands, either physically or through remote access to data centres located outside mainland China. Southeast Asia has emerged as a focal point in this regard. Malaysia, in particular, has seen a surge in semiconductor imports, with major corporations such as Oracle Corporation investing heavily in regional data centre infrastructure. Malaysian authorities have pledged to tighten scrutiny of these shipments under growing pressure from the United States. However, the new rule suggests lingering concerns in Washington. The spotlight has also turned to Singapore, where prosecutors have charged three individuals in connection with a scheme to deceive clients about the final destination of AI servers. These servers were reportedly shipped from Singapore to Malaysia and may have included advanced Nvidia chips. Nvidia is not implicated in the investigation and has not been accused of wrongdoing. To mitigate disruptions to businesses operating in the region, the draft regulation is expected to include transitional measures. According to individuals briefed on the plan, companies headquartered in the US or allied nations may be permitted to continue shipments to Malaysia and Thailand without a licence for a limited period following the rule’s publication. The rule is also likely to retain certain licensing exemptions to prevent supply chain disruptions. Many US semiconductor firms rely on Southeast Asia for critical manufacturing steps, such as chip packaging. As the global competition over AI intensifies, Washington’s evolving regulatory landscape underscores the balancing act between maintaining technological supremacy and safeguarding strategic interests. -Bloomberg

KAIST and King Saud University have agreed to deepen their collaboration in artificial intelligence, seeking to establish themselves as key players in a domain currently dominated by the United States and China. The two institutions are in talks to launch a joint degree programme and co-develop an independent, open-source AI model. The agreement was reached during a high-level meeting between KAIST President Lee Kwang-hyung and Abdullah Al-Salman, President of King Saud University, held earlier this week. According to a KAIST statement released Friday, both leaders committed to forming a strategic partnership aimed at long-term AI innovation. Central to this initiative is the establishment of a joint AI research centre, which will serve as the hub for collaborative development of an open AI model that is not dependent on the existing US or Chinese frameworks. “With Saudi Arabia’s investment capabilities and KAIST’s technological innovation, alongside the remarkable talent present in both nations, we have a real opportunity to diversify the global AI ecosystem,” said KAIST President Lee. “Through joint research and the development of an independent AI model, we can establish our own competitive edge in a digital landscape currently led by major powers and expand our reach into markets such as the Middle East, North America, and ASEAN.” In addition to research, both institutions discussed launching a joint degree programme, with a focus on increasing academic exchange and collaboration in science and engineering. This would include enhanced opportunities for student and faculty mobility, as well as shared research initiatives. The universities plan to formalise the agreement through a memorandum of understanding in the near future. This will include the establishment of the AI research centre and the rollout of joint programmes designed to nurture globally competitive talent in AI and emerging technologies. “Under our Vision 2030 framework, Saudi Arabia is focused on achieving technological transformation through open policy and strategic investment,” said King Saud University President Abdullah Al-Salman. “Our partnership with KAIST will serve as a practical cornerstone for building a regional AI ecosystem and enhancing our digital competitiveness.” -Korea JoongAng Daily

China’s Contemporary Amperex Technology Co. Limited (CATL), a global leader in battery manufacturing, has entered into a new strategic agreement with Geely Auto, one of the country’s foremost automotive groups, to deepen their collaboration in the electric vehicle (EV) sector. This enhanced partnership is designed to drive innovation in power battery technology, strengthen product platform integration and optimise supply chain systems. The initiative is part of a broader strategy to meet the rapidly growing demand for EVs both domestically and in international markets. By aligning their respective strengths, CATL and Geely intend to bolster their competitive position in the global automotive landscape. The collaboration is expected to accelerate the development of advanced EV technologies and improve the efficiency of production, supporting the continued evolution of the electric mobility sector. As demand surges for cleaner, more sustainable transportation solutions, both companies are positioning themselves to lead the transition through technological synergy and supply chain agility. -TechInAsia

China is leading a major shift towards renewable energy among BRICS nations, positioning the bloc as a dominant force in the global solar power sector. According to a recent report by energy research group Ember, BRICS countries collectively generated 51% of the world’s solar electricity in 2024—more than triple their share a decade ago, which stood at just 15%. While many BRICS members remain significant producers of fossil fuels, the transition to solar energy is accelerating rapidly, spearheaded by China’s extensive clean-energy infrastructure. In 2024, China alone accounted for 39% of global solar generation, with India contributing 6.3% and Brazil 3.5%, reinforcing the bloc’s growing renewable energy credentials. Originally formed to reflect the rising economic influence of Brazil, Russia, India, China and South Africa, the BRICS group has expanded both its membership and geopolitical weight. Newer entrants include Iran, Egypt, Ethiopia, the United Arab Emirates and Indonesia, while Saudi Arabia has received an invitation but has yet to confirm participation. China, India and Brazil now rank among the world’s top five solar-generating nations. Their momentum continues into 2025, with China recording a 42% increase in solar output during the first four months of the year. India and Brazil have also posted year-on-year increases exceeding 30%. Trade within the bloc is intensifying, with China exporting US$9.4 billion worth of solar cells and panels to fellow BRICS members since the beginning of 2024, according to data from BloombergNEF. This underscores the dual strength of China’s manufacturing capabilities and its strategic ties with emerging economies. Despite this progress, the benefits of clean energy leadership among founding BRICS members are not uniformly distributed. According to an April study by Global Energy Monitor, several newer partner states—including Indonesia, Kazakhstan, Nigeria and Malaysia—are prioritising fossil fuel expansion. These countries are currently constructing 25 gigawatts of new fossil-fuel capacity, compared to just 10 gigawatts of clean energy projects. Notably, over 60% of the fossil-fuel infrastructure underway in these regions involves Chinese firms, either as project developers or financiers, highlighting the complexities of China’s energy diplomacy even amid its leadership in renewable generation. -Bloomberg

Alibaba Group Holding Ltd is expanding its AI-driven cloud infrastructure in Southeast Asia, underscoring its ambitions to become a global leader in artificial intelligence and cloud services. The company has launched its third data centre in Malaysia this week, while its second facility in the Philippines is scheduled to open in October, according to a corporate statement issued on Wednesday. The Hangzhou-headquartered conglomerate also unveiled a new global competency centre in Singapore, aimed at accelerating AI adoption across a wide range of industries. The initiative is expected to benefit over 5,000 businesses and 100,000 developers by facilitating access to Alibaba’s advanced AI models. Chief Executive Officer Eddie Wu reaffirmed the company’s commitment to global expansion through a pre-recorded video address at a corporate event in Singapore. “Globalisation is Alibaba Cloud’s long-term strategy,” Wu stated, outlining the firm’s vision to scale its cloud network across China, Japan, South Korea, Southeast Asia, the Middle East, Europe, and the Americas over the next three years. Alibaba has pledged to invest more than US$53 billion (approximately RM223.3 billion) in AI infrastructure during this period, signalling the depth of its strategic commitment. The expansion builds on previous infrastructure investments in Thailand, Mexico, and South Korea. While traditionally recognised for its e-commerce dominance in China, Alibaba has shifted focus towards artificial intelligence, developing standalone solutions based on its proprietary Qwen AI models. In a significant strategic shift earlier this year, Wu described artificial general intelligence—AI with human-level cognitive capabilities—as the company’s “primary objective”, positioning Alibaba at the forefront of the global AI race amid the rise of competitors such as DeepSeek. -Bloomberg