The US government is reportedly preparing another change to its AI chip export policy, this time with Malaysia and Thailand in focus. The planned restrictions are aimed at preventing suspected smuggling to China, according to Bloomberg.
The proposal would update current rules while keeping strict controls in place for China and more than 40 other countries. At the same time, the Trump administration reportedly intends to lift earlier global regulations on AI technology transfers.
What the reported AI chip controls would change
The central shift is narrower targeting. Rather than keeping broad global rules on AI technology transfers, the reported plan would preserve strict export controls where the US government sees the highest concern, including China and more than 40 other countries.
Malaysia and Thailand are the new focus of the reported restrictions. The stated purpose is to reduce the risk that AI chips exported through those markets could be moved onward to China.
The source article describes the plan as coming from a draft by the US Department of Commerce. Under that draft, companies headquartered in the US would be able to keep supplying chips to the US and "a few dozen friendly nations" without special authorization for several months.
Why Malaysia and Thailand matter in this plan
The reported targeting of Malaysia and Thailand is tied to suspected smuggling to China. The article does not describe specific cases, companies, routes, or volumes, so the key point is the policy logic: export controls are being shaped around where officials believe diversion risk may exist.
For AI chip makers and buyers, that kind of approach can create a more complicated map. Some destinations may remain relatively straightforward for US-headquartered companies, while others may face additional authorization requirements or tighter scrutiny.
The source does not say the restrictions are final. It reports that the US government is planning new measures and that the Department of Commerce draft would allow certain chip supply to continue without special authorization for several months.
How this fits with wider AI technology transfer rules
The reported plan has two parts that move in different directions. One part keeps strict controls on China and more than 40 other countries. The other part would lift previous global regulations on AI technology transfers.
That suggests a policy direction focused less on one worldwide rule and more on selected destinations. The article frames the change as an attempt to preserve controls where the administration wants them most while relaxing broader restrictions elsewhere.
For companies headquartered in the US, the draft would matter because it defines where they can continue supplying chips without special authorization for a limited period. The article does not specify the exact countries included in "a few dozen friendly nations," nor does it give the duration beyond saying several months.
What remains unclear
Several important details are not included in the source report. Nvidia did not comment on the plans, and officials from Malaysia and Thailand also did not comment. That leaves open how affected governments and companies may respond if the reported restrictions move forward.
The article also does not state when the rules would take effect, whether the draft could change, or what exact authorization process would apply. It does not name specific AI chip models, companies beyond Nvidia, or enforcement mechanisms.
What is clear from the report is the direction of travel: the US government is looking at new AI chip export controls involving Malaysia and Thailand, with the stated aim of preventing suspected smuggling to China. At the same time, China is investing heavily in its own chip infrastructure.
The immediate takeaway
The reported draft points to a more selective US approach to AI chip export controls. China and more than 40 other countries would remain under strict controls, Malaysia and Thailand could face new restrictions, and previous global regulations on AI technology transfers would be lifted.
Until the plan is finalized, the practical impact remains uncertain. But the report shows that AI chips continue to sit at the center of a larger technology control strategy, where supply chains, national policy, and access to advanced computing hardware are closely connected.