Malaysia has been probing alleged Nvidia AI chip diversion since April 2025, home minister says

Malaysian Home Minister Saifuddin Nasution said on Saturday (Nov. 14) in Lumut, Perak, that police opened an investigation as early as April 2025 under the Strategic Trade Act 2010 into U.S. allegations that high-performance Nvidia AI chips were illegally diverted through Malaysia.

Saifuddin said investigators are looking into whether anyone used Malaysia as a transit hub, or whether local shell companies were involved. Agencies taking part include Bank Negara Malaysia, the Inland Revenue Board, the Malaysian Communications and Multimedia Commission, Customs and the police, with the Ministry of Investment, Trade and Industry leading and a dedicated committee under the Strategic Trade Act coordinating the work.

The minister did not say whether the investigation has found evidence supporting the allegations, describing the probe only as “very complex” and saying progress is reported regularly to the ministry.

Context: a similar case in Singapore and the responses so far

Singapore is investigating Megaspeed International over the suspected diversion of servers containing Nvidia chips, in a case involving about US$390 million in transactions, with five people charged. Malaysian Prime Minister Anwar Ibrahim said on Nov. 13 that there is currently no evidence the chips in question were exported via Malaysia. Nvidia co-founder Jensen Huang stepped down as the company's chief executive on Nov. 12.

It should be noted that the diversion remains an allegation that has not been proven, and the investigation is ongoing.

(File photo: an Nvidia AI data centre. Photo: Trade Talk Journal)