March 23 (Reuters) - Malaysia plans to tighten

regulations on semiconductors as it comes under U.S. pressure to

staunch the flow to China of chips crucial to the development of

artificial intelligence, the Financial Times said on Sunday.

Trade Minister Zafrul Aziz said that the U.S. government was

demanding Malaysia closely track the movement of high-end Nvidia ( NVDA )

chips that enter the country over suspicions that many

are ending up in China, according to the report.

(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Mrigank

Dhaniwala)