Kuala Lumpur: The Ministry of Investment, Trade and Industry (MITI) has expressed optimism about the potential benefits if the United States enforces AI chip export restrictions. MITI suggested that such a move could drive local innovation, speed up the development of the generative AI ecosystem, and bolster efforts towards achieving the goal of establishing 3,000 smart factories by 2030.
According to BERNAMA News Agency, AI chips are essential for the operation of AI data centres and cloud regions currently being developed by major tech companies like Amazon, Google, Microsoft, and Oracle in Malaysia. However, MITI clarified that other data centres providing transaction, e-commerce, media, and data storage services are not anticipated to be impacted by these restrictions.
MITI acknowledged the challenges Malaysia may face in developing AI data centres but reassured that these will not adversely affect the broader data centre business ecosystem. The government plans to leverage existing bilateral cooperation platforms, such as the US-Malaysia Memorandum of Cooperation on Semiconductor Supply Chain Resilience signed in 2022, to address these challenges.
The ministry emphasized that the collaboration will facilitate dialogue and information exchange on factors influencing the supply chain and measures to prevent semiconductor supply disruptions. MITI highlighted that Malaysia can utilize this platform to formally discuss AI chip export restrictions with the US government to safeguard the interests of the technology and data centre industries in Malaysia.
Additionally, MITI indicated that the government would seek partnerships with other countries capable of producing AI chips. This strategic move aims to reduce Malaysia’s reliance on US AI chip technology and ensure that industries dependent on advanced AI technology remain unaffected. The government is committed to acting in accordance with the National Semiconductor Strategy to minimize any potential impacts on Malaysia’s electrical and electronics sector ecosystem.