Malaysia Can Strengthen Local Technology If US AI Chip Export Restrictions Are Enforced - MITI
The Ministry of Investment, Trade and Industry (MITI) said the move could encourage local innovation, accelerate the development of the generative AI ecosystem, and strengthen efforts to achieve the target of 3,000 smart factories by 2030.
AI chips are also a critical component required for the operation of AI data centres and cloud regions currently being developed by Amazon, Google, Microsoft and Oracle in Malaysia.
“However, the operations of other data centres that provide transaction, e-commerce, media and data storage services are not expected to be affected by these restrictions.
“Malaysia is seen to face challenges in the development of AI data centres but this will not affect the entire data centre business ecosystem,” it said in a written reply on the Dewan Negara website today.
MITI said that in addressing the challenges, the government can leverage on previously developed bilateral cooperation platforms, including the US-Malaysia Memorandum of Cooperation on Semiconductor Supply Chain Resilience (MOC) signed in 2022.
It said the collaboration would enable dialogue and exchange of information on factors that could affect the supply chain as well as measures to prevent semiconductor supply disruptions.
“Therefore, Malaysia can use this platform to formally discuss AI chip export restrictions with the US government to ensure that the interests of the technology and data centre industries in Malaysia continue to be protected.”
MITI said the government would also explore collaboration with other countries that have the ability to produce AI chips, for use in various industries in Malaysia and thus reduce dependence on AI chip technology from the US.
The government would act accordingly in line with the National Semiconductor Strategy to ensure that industries that rely on advanced AI technology are not affected or their impact on the electrical and electronics sector ecosystem in Malaysia is minimised, it added.
-- BERNAMA
