[News] Malaysia’s AI Chip Curbs Shake Server Supply Chains, May Hit Super Micro and Taiwan’s Wiwynn

Malaysia’s trade ministry announced on Monday that the export, transshipment, and transit of high-performance AI chips of U.S. origin will now require a trade permit, effective immediately, according to Reuters. As Economic Daily News notes, Malaysia is a major hub for AI server production, raising concerns that the new regulation could disrupt shipments of NVIDIA’s AI chips to the country and impact AI server manufacturers.

As Reuters further notes, the ministry stated that individuals or companies must notify authorities at least 30 days in advance before exporting, transshipping, or transiting any item not explicitly listed on Malaysia’s strategic items list. The move is intended to close regulatory gaps as Malaysia continues to review whether high-performance AI chips of U.S. origin should be added to its list of strategic items, the ministry added.

Potential Disruptions for Key AI Server Supply Chains

Investors cited by Economic Daily News indicate that Super Micro and Taiwan’s Wiwynn, both with significant production capacity in Malaysia, may be affected. The report highlights that Wiwynn is the Taiwanese server ODM with the largest manufacturing footprint in Malaysia, making it particularly vulnerable.

As Economic Daily News indicates, Wiwynn’s server rack assembly plant in Johor began mass production in 2023, followed by the launch of a motherboard production line in 2024. Meanwhile, Super Micro’s new production capacity in Johor began shipments by the end of 2024, with a monthly output of up to 5,000 server racks.

Malaysia Emerges as AI Data Center Hub, Prompting U.S. Scrutiny

Economic Daily News notes that global tech giants are rapidly building data centers in Malaysia, raising U.S. concerns that the country could become a potential conduit for China to access advanced AI chips. According to Reuters, Alibaba Cloud opened its third data center in Malaysia in July 2025. Microsoft is also set to launch its first Malaysian cloud region—comprising three data centers—by mid-2025, following a USD 2.2 billion investment announced the previous year, as Reuters notes.

Malaysian companies are also expanding their AI data infrastructure. As reported by South China Morning Post, local conglomerate YTL Corporation is developing a 275-acre site dedicated to data center development.

According to a March report from Financial Times, Malaysia has been tightening semiconductor regulations under U.S. pressure to curb the flow of AI chips to China.

Read more

• [News] U.S. Reportedly Mulls AI Chip Curbs on Malaysia, Thailand—Taiwan Server Firms at Risk
• [News] Malaysia Reportedly to Monitor NVIDIA AI Chip Shipments Amid U.S. Concerns Over Transfers to China

(Photo credit: Super Micro)