Penang-based company denies moving AI chips to China

Malaysian electronics manufacturer Innospec Sdn Bhd has denied allegations that it facilitated the illegal transfer of restricted US AI chips to China. The company maintains that it only assembles parts provided by customers and adheres to all international export regulations.
Why it matters
The report highlights ongoing global tensions regarding the enforcement of US export controls on advanced technology and the role of third-party manufacturing hubs.
Innospec Sdn Bhd says no computer part used involves sensitive tech (moved) from the US to China. (Envato Elements pic)
GEORGE TOWN: A Penang-based electronic manufacturing services (EMS) company has denied allegations that it moved AI computer chips - subject to sanctions from Washington - from the US to China, saying the claim was untrue.
Innospec Sdn Bhd said it only assembles the product "where all materials are consigned by the customers."
"As far as we are concerned, we are assembling parts for our customers where none of the parts is sensitive tech (moved) from the US to China,” the firm told FMT.
The New York Times (NYT), in an article on Sept 6, accused Innospec of receiving computer chips and parts from Aivres, the American subsidiary of blacklisted Chinese tech firm Inspur.
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