LUMUT, PERAK – Malaysian police opened an investigation in April 2025 into United States allegations that high-performance artificial intelligence chips, including those produced by Nvidia, were illicitly procured or diverted through Malaysia.
Home Minister Saifuddin Nasution Ismail said the investigation was launched immediately after the allegations emerged. It is examining whether Malaysia was used as a transit hub and whether local proxy companies were involved.
Saifuddin said the probe is being conducted under the Strategic Trade Act 2010, with several agencies involved, including Bank Negara Malaysia, the Inland Revenue Board, the Malaysian Communications and Multimedia Commission, Customs and the police. The Ministry of Investment, Trade and Industry is leading the effort through the Strategic Trade Act Committee, known as STAC.
He was responding to questions on whether Malaysia had been affected by uncertainties surrounding Nvidia’s leadership. On November 12, the US chipmaker announced that co-founder Jensen Huang had resigned as president, chief executive officer and board member with immediate effect, ending his 33-year tenure with the company.
The minister said police were taking the allegations seriously and regularly updating MITI on the investigation’s progress. He described the case as complex, involving multiple layers of investigation into whether evidence supports claims of illicit procurement or diversion.