Limited impact on data centre builders from chip curbs


FILE PHOTO: Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo

KUALA LUMPUR: RHB Research says it is confident that the US government’s recent move to restrict exports of artificial intelligence (AI) chips will have a minimal impact on Malaysia’s key data centre contractors, particularly Gamuda Bhd and Sunway Construction Group Bhd.

In a research note yesterday, RHB Research said this is due to the high likelihood of their data-centre clients from Tier-One countries being eligible to apply for the Universal Validated End User programme, allowing larger quantities of AI chips to be brought into Tier-Two countries like Malaysia if certain conditions are met.

Other than Malaysia, Tier-Two countries include Brazil, India, Singapore, Switzerland, Angola, Austria, the Czech Republic, Greece, Indonesia, Kenya, Luxembourg, Mexico, Monaco, Nigeria, Poland, Portugal, Romania, South Africa, Thailand and Turkey. — Bernama

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AI , semiconductor , restriction , trade

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