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Penang-based company denies moving AI chips to China

Innospec says the allegation in the New York Times is untrue and it only assembles a product when materials are consigned by the customer.

Penang-based company denies moving AI chips to China

Innospec Sdn Bhd, a Penang-based electronic manufacturing services company, has refuted claims that it transferred AI computer chips, which are subject to US sanctions, from the United States to China. The company asserted that it only assembles products based on customer-supplied materials. Accusations surfaced after The New York Times reported on September 6 that Innospec received computer chips and parts from Aivres, a US subsidiary of the Chinese tech firm Inspur.

These components were then allegedly transferred to Maginfra, a China-based IT company. In response, Innospec emphasized that it cannot ship parts to any party other than the consignor, as it would be held accountable for any lost items. The firm, a subsidiary of Kobay Technology Bhd, also affirmed compliance with government regulations.

The NYT piece also named other Malaysian subsidiaries of regional companies facing similar accusations, including Singapore-based Megaspeed International and Aolani Cloud.

Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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