Malaysia says probing Megaspeed subsidiary over possible AI chip diversion

On November 13, Malaysia's trade ministry announced it is investigating SpeedMatrix, a Malaysian subsidiary of Singapore-based Megaspeed, over possible diversion of AI chips. This follows the resignation of Megaspeed CEO Jensen Huang from Nvidia due to an affair reportedly with Alice Huang, a suspected Chinese spy and former top executive at Megaspeed.

The Ministry of Investment, Trade and Industry (MITI) stated that SpeedMatrix is allowed to bring AI chips into Malaysia without permits or licenses. However, since July last year, anyone wanting to export, re-export, transship or transit high-performance US AI chips through Malaysia must obtain a permit. Giving false information to customs about such items is a serious offence.

MITI is collaborating with the Royal Malaysian Customs Department to determine whether chips brought into Malaysia by SpeedMatrix have been re-exported to other countries and if these reexports complied with the law. Malaysia is conducting its own checks in line with Malaysian law and based on available evidence. The ministry has never cleared Megaspeed or its Malaysian affiliate Speedmatrix, and any verification visits were part of their regular sector monitoring.

Malaysia is also working closely with authorities in Singapore and the US, considering additional measures to strengthen controls as needed. While Malaysia does not enforce unilateral export controls, all companies operating in Malaysia are expected to consider such controls in their international business dealings. The ministry urges companies to avoid misrepresenting their dealings with government agencies, adding that stringent action will be taken against offenders.

Malaysia welcomes investment in data centers and technology but will not be used to circumvent export controls.