Penang-based company denies moving AI chips to China

Innospec Sdn Bhd, a Penang-based electronic manufacturing services company, has denied claims that it moved AI computer chips from the US to China. The company only assembles products, receiving materials from customers. Innospec stated that none of the parts used are sensitive tech moved from the US to China. The claim was made in response to an article by The New York Times (NYT) which accused Innospec of receiving computer chips and parts from Aivres, an American subsidiary of the blacklisted Chinese tech firm Inspur.

These chips and parts were then sent to Maginfra, a China-based IT company. Washington placed export controls on advanced chips to China in 2022. Innospec also clarified its shipping policy, stating it can only ship parts consigned by and received from customers back to the consignor. The firm emphasized its adherence to government rules and regulations.

The NYT article also named other Malaysian subsidiaries of regional firms, including Singapore-based Megaspeed International and Aolani Cloud, both accused of moving significant quantities of advanced AI chips to China through Malaysian subsidiaries. FMT has sought comments from Megaspeed International, Aolani Cloud, and the investment, trade, and industry ministry regarding these allegations.