WASHINGTON, Oct 31 (Reuters) - A U.S. Republican senator
is asking U.S. President Donald Trump's administration to help
the Malaysian government prevent U.S. artificial intelligence
chips from being smuggled through the country to China,
according to a letter seen by Reuters.
Reuters has previously reported that U.S. officials believe
Malaysia is among a handful of countries where organized
smuggling operations have worked to get U.S. chips into China
that would otherwise be banned from export to China.
Senator Tom Cotton, an Arkansas Republican, wrote a letter to
U.S. Commerce Secretary Howard Lutnick saying Malaysian
officials had begun cracking down on such activity and the Trump
administration should aid Malaysian officials in the effort by
helping the country develop screening programs to ensure chips
are not being diverted to China.
Cotton, who along with the Trump administration has supported
the idea of requiring U.S. chips to contain technology that
would verify their location to prevent smuggling, said chips
with such technology should be given a green light for export to
Malaysia.
"As is often the case, U.S. companies are at the forefront
of developing creative and innovative technical solutions, which
will help add layers of assurance against illegal diversion,"
Cotton wrote in an October 30 letter.
"To support the semiconductor industry in their efforts, it may
be beneficial for U.S. and Malaysian officials to develop
priority customs clearance procedures for shipments of advanced
U.S. chips with anti-diversion mechanisms," Cotton said.
Malaysia, China's largest trading partner in Southeast Asia,
announced in July it was requiring permits for all exports,
trans-shipments and transits of U.S.-made high-performance
chips, such as those made by Nvidia ( NVDA ).