Malaysia will take action against local companies implicated in a fraud case involving the alleged transfer of Nvidia AI chips from Singapore to China.

This follows Singapore’s charges against three individuals on Feb. 27 for fraud involving servers with Nvidia chips from companies like Dell and Super Micro.

Singapore’s law minister K Shanmugam questioned whether Malaysia was the final destination or if the servers were moved elsewhere under false representations.

Malaysia’s trade minister Tengku Zafrul Aziz said there is no evidence of unauthorized chip usage among major data center operators like Microsoft, AWS, and Google.

The case ties to earlier reports of potential United States chip smuggling into China through countries like Malaysia, Singapore, and the United Arab Emirates

Malaysian authorities are investigating the chips’ ultimate destinations, reiterating that Malaysia was not the intended recipient. Investigations are ongoing.

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