Nvidia 'spy' scandal: Megaspeed Malaysian arm Speedmatrix under scanner
Malaysian authorities are investigating Speedmatrix, a subsidiary of Megaspeed International, over allegations that it helped bypass US export restrictions on Nvidia AI chips to China. The Ministry of Investment, Trade and Industry has clarified that it has not cleared the company, despite earlier claims by the firm.
Why it matters
This highlights the challenges of enforcing US trade curbs on high-performance AI hardware in global supply chains and the geopolitical pressure on emerging tech hubs.
Kuala Lumpur: The spotlight is now on Malaysia as the fallout of the Nvidia spy scandal engulfs more companies and alleged South East Asia-based intermediaries. Fears of high-performance Nvidia chips finding their way to China through Malaysia, bypassing the US trade curbs, have swung the authorities here into action.Ministry of investment, trade and industry (MITI) has intensified the probe into Speedmatrix Sdn Bhd, a subsidiary of Singapore-based Megaspeed International Pte Ltd, in collaboration with Royal Malaysian Customs Department.Malaysia's home minister Saifuddin Nasution Ismail said on Saturday that police had opened an investigation paper as early as April 2025 on allegations that Malaysian subsidiaries were used to circumvent US export restrictions on Nvidia AI chips.In a statement on Friday, MITI said emphatically that "it has never cleared Singapore-based Megaspeed or its Malaysian affiliate Speedmatrix.""Speedmatrix is a tenant at data centres in Malaysia.
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