US Weighs Chip Export Rules for Southeast Asia
Commerce Department considers licensing requirements for Malaysia, Thailand, Indonesia and Singapore as data centres boom.
Updated on Nov. 13, 2026 in Semiconductors
Live Poll
Do you expect tighter US chip export rules to raise prices for electronics?
The US Commerce Department is considering new export rules and licensing requirements for Malaysia, Thailand, Indonesia and Singapore. Legislation that may pass by the end of 2026 could also firm restrictions on sales of high-end chips to foreign countries.
Why it matters
Some in the Trump administration fear Singapore, Malaysia and Thailand have been weak points in global efforts to keep advanced technology from China, including as transit points for diverting chips. Chinese players can use Southeast Asia as a platform for deploying US chips in model training for non-China markets.
Goldman Sachs projects Southeast Asia's data centre capacity will grow fourfold in the next five years and estimates Johor, Malaysia will become the largest data centre hub in Asean by 2030. The forecast does not address how much of this capacity would be built with restricted advanced AI chips.
The players
Goldman Sachs
Goldman Sachs is a global investment bank whose research division publishes macroeconomic and sector forecasts widely followed by investors and policymakers.
US Commerce Department
The US Commerce Department is the federal agency responsible for administering export controls on advanced technology, including semiconductors.
Nvidia Corp
Nvidia Corp is a US chipmaker whose high-end AI processors are central to global debates over export restrictions to China.
The details
Malaysia is investigating whether AI chips brought into the country have since been shipped overseas, and Singapore charged a fifth person in an AI server fraud case. The Commerce Department's proposed measures would target Malaysia, Thailand, Indonesia and Singapore, with legislation that could tighten sales of high-end chips to foreign countries.
Timeline
2026: Data centres emerged as an unexpected growth driver for Southeast Asia.
September 2026: Goldman Sachs published its report on Southeast Asia's appeal.
November 2026: Singapore charged a fifth person in the AI server fraud case.
End of 2026: Possible passage of legislation firming restrictions on high-end chip sales.
2026 to 2028: Projected growth boost for Malaysia and Thailand data centres.
Market Landscape
The proposed rules extend the October 2022 US semiconductor export controls on China to Southeast Asian transit and hosting hubs. Data centre growth in the region is making those hubs a more consequential front in the contest over advanced AI chips.
Tighter export licensing could affect the availability and pricing of AI hardware for companies building or using cloud and data centre services. Users of AI tools may see the effects indirectly through the cost and speed of cloud computing capacity.
The takeaway
Southeast Asia's emergence as a data centre hub is pulling it into the center of US chip export policy. Businesses that rely on AI infrastructure in the region should track whether licensing requirements are finalized by the end of 2026.
What happens next
Legislation that may pass by the end of 2026 could firm restrictions on sales of high-end chips to foreign countries.
Further reading
For more on the chip supply chain behind these proposals, explore our Semiconductors coverage.
Live Poll
Do you expect tighter US chip export rules to raise prices for electronics?
