Malaysia evaluates Huawei chips for national AI network

Malaysia is exploring the possibility of incorporating Huawei's Ascend 910C processors into a RM2 billion sovereign artificial intelligence project. This decision would potentially place Chinese hardware at the forefront of infrastructure designed to safeguard sensitive national data domestically. The evaluation of Huawei's AI accelerators is currently underway, though no final procurement decision has been made and the exact number of chips under consideration remains undisclosed.

The project is set to be operated by Telekom Malaysia, a state-linked entity selected through a public tender and already acquainted with Huawei's offerings. Malaysia's deliberations come as the nation finds itself at the intersection of a growing competition between Washington and Beijing over the technology underpinning artificial intelligence.

The United States has cautioned that the use of Huawei's Ascend 910C might breach American export-control rules. Meanwhile, Malaysia has maintained that technology decisions ought to prioritize national interests and adhere to applicable laws. Huawei's flagship AI accelerator, the 910C, is being considered over the newer Ascend 950 series, which is currently produced in limited quantities.

Notably, Telekom Malaysia's existing AI computing service relies on Nvidia processors, underscoring the array of technology options that Kuala Lumpur must weigh. The government is also contemplating another tender process that could provide Nvidia and other U.S. suppliers with a more direct pathway to compete for the sovereign AI contract.

Prime Minister Anwar Ibrahim has consistently argued for Malaysia to foster domestic technological prowess rather than remain an importer of overseas-developed systems. His government officially launched AI Malaysia Berhad under the Digital Ministry in July to spearhead its vision of becoming an "AI Nation" by 2030 and to enhance national AI development, governance, and deployment.

Sovereign AI holds particular significance for the government as the proposed infrastructure is intended to process information that could encompass sensitive government, military, and intelligence material. Kuala Lumpur aims to retain such data within Malaysia, thereby minimizing dependence on foreign-controlled computing environments and empowering national institutions with greater authority over storage and access.

Anwar has also questioned the ramifications of the U.S. Cloud Act, which permits American courts in certain circumstances to compel U.S. technology companies to divulge electronic data even when it is stored abroad. During a conversation with university students in April, he characterized the law as unreasonable, while acknowledging the challenge of opposing Washington on the matter.

U.S. officials have raised separate security concerns regarding the use of Huawei equipment to manage intelligence-related material, including information provided by foreign governments. A State Department spokesperson emphasized the necessity of secure technology for economic prosperity and cautioned that suppliers susceptible to government manipulation could jeopardize critical infrastructure, privacy, intellectual property, and national security, without specifying China or Huawei.

Malaysia's National Security Council officials are slated to visit Washington later this month for discussions that will encompass the technology issue. This development unfolds as the United States aggressively promotes its AI hardware, software, and applications across developing markets and contemplates government-backed financing schemes to bolster the international standing of U.S. suppliers.

The current evaluation is a follow-up to a controversy in May 2025, when a deputy communications minister suggested that a Malaysian AI initiative would deploy 3,000 Huawei Ascend chips. Her statements were subsequently withdrawn, and the Investment, Trade and Industry Ministry clarified that the project in question was privately driven, not endorsed or coordinated by the government.

At the time, the ministry affirmed Malaysia's commitment to applicable export-control laws while asserting the country's sovereign right to formulate policy in accordance with national interests. Malaysia's National AI Action Plan for 2026-2030 emphasizes responsible adoption, strengthening domestic capabilities, and fostering globally competitive locally developed solutions.

The plan interlinks AI deployment with economic productivity, public-sector transformation, and governance, positioning infrastructure choices within a broader strategy.