Kuala Lumpur, March 5 (Reuters) - Malaysia is

investigating if local laws were breached in the shipment of

servers linked to a Singapore fraud case, as they may have

contained advanced chips subject to U.S. export controls.

Singapore charged three men late last month with fraud in a

case that domestic media linked to the transfer of Nvidia's ( NVDA )

artificial intelligence chips from the country to

Chinese AI firm DeepSeek.

Singapore said the servers involved in the case were

supplied by U.S. firms and shipped to Malaysia. It also said the

servers may have contained Nvidia ( NVDA ) chips, without elaborating

whether they are subject to U.S. export controls.

"The Government of Malaysia is taking the necessary actions

to establish whether Malaysian laws had been breached in the

alleged shipment of U.S.-sanctioned AI chips from Singapore to

Malaysia," the trade ministry said in a statement late on

Tuesday.

It said the government is working closely with the U.S. and

Singapore to "find effective ways to address the issue of the

trade involving U.S.-sanctioned chips".

The United States is investigating if DeepSeek, the Chinese

company whose AI model's performance rocked the tech world in

January, has been using U.S. chips that are not allowed to be

shipped to China, Reuters reported earlier.