KUALA LUMPUR: A reported move by the Trump administration to roll back Biden-era restrictions on AI chip exports could create new growth opportunities for Malaysia’s AI and data centre sectors, according to industry analysts.
UOB Kay Hian’s head of investment research, Mohd Sedek Jantan, told Bernama that this potential policy reversal would improve Malaysia’s access to high-performance chips such as Nvidia’s H100 and H200, which are crucial for training AI models and powering data infrastructure.
“This relaxation could significantly benefit Malaysia’s data centre ecosystem, which has already attracted major investments from American tech giants like Amazon Web Services, Microsoft and Google since 2023,” he said.
The move could further align with Malaysia’s National Semiconductor Strategy (NSS), which aims to move the industry up the value chain by focusing on high-margin areas such as integrated circuit (IC) design and wafer fabrication. Global firms including Intel and Infineon have committed US$7 billion and RM8 billion, respectively, to expand operations in Malaysia, particularly in Penang and Kedah.
Enhanced chip access may strengthen Malaysia’s position in the global semiconductor value chain, increasing export complexity and total factor productivity. Mohd Sedek noted that Malaysia’s low-cost power, stable political environment and strategic ASEAN location continue to make it attractive for tech investments.
However, he cautioned that while quantitative restrictions may be lifted, stricter qualitative controls may follow. These could include tighter end-user certifications and real-time monitoring to prevent diversion of dual-use technologies, particularly to China.
“Malaysia has been flagged previously as a potential transhipment hub, so increased compliance burdens may arise, affecting SMEs’ operating costs and competitiveness,” he added.
The Trump administration’s planned rollback — still not final — seeks to ease a contentious Biden policy that categorised countries into tiers for AI chip exports, a move that faced opposition from industry players and foreign governments. The AI diffusion rule is set to take effect on May 15, but the Trump team reportedly does not plan to enforce it.
— BERNAMA
