Cops probing alleged Nvidia chip diversion since April 2025, says Saifuddin

Police have been investigating allegations that Malaysia was used to circumvent US export restrictions on Nvidia artificial intelligence (AI) chips since April 2025, Home Minister Saifuddin Nasution Ismail revealed today.

The disclosure comes amid renewed scrutiny of Singapore-based Megaspeed International Pte Ltd and its Malaysian subsidiary, Speedmatrix Sdn Bhd, over allegations that advanced Nvidia chips were shipped to data centres in Malaysia and Indonesia to serve Chinese customers.

"To answer the first question, have the police opened an investigation paper? The answer is yes, as early as April 2025.

"Our investigation also focuses on whether Malaysia has been used as a transit hub. That is part of the scope of our investigation," Saifuddin (above) said during a press conference in Sitiawan, Perak, today.

He said the probe, conducted under the Strategic Trade Act 2010, followed US allegations involving proxy companies, illicit procurement and the diversion of advanced AI chips through Malaysia.

The Investment, Trade and Industry Ministry is leading the multi-agency investigation, involving police, Bank Negara Malaysia, the Inland Revenue Board, the MCMC and Customs Department.

Saifuddin said police had been updating the Investment, Trade and Industry Ministry on their findings - with the latter responsible for communicating them to the US authorities.

He, however, declined to say whether investigators had uncovered evidence substantiating the allegations.

"As for whether our investigation has uncovered evidence supporting the allegations, including evidence of illicit diversion or illicit procurement, this involves multiple layers of investigation.

"Naturally, the investigation is extremely complex. At this stage, I can confirm that we have been providing updates on the progress of our investigation to the Investment, Trade and Industry Ministry, for onward communication to the relevant parties," he said.

Megaspeed under scrutiny

The latest controversy centres on Megaspeed, which reportedly purchased US$4.8 billion (RM19.5 billion) worth of Nvidia AI chips between June 2024 and February 2026.

Malaysiakini reported on Nov 10 that the chips were allegedly shipped to data centres in Malaysia and Indonesia, raising concerns over possible circumvention of US export restrictions.

Foreign media reports have also examined Megaspeed's reported links to Alice Huang, a former executive allegedly tied to Chinese intelligence.

READ MORE: How is Malaysia linked to Nvidia spy affair scandal?

Megaspeed has denied involvement in illicit chip trading, maintaining that inspections by US and Malaysian officials, as well as Nvidia, found no wrongdoing.

On Nov 10, Investment, Trade and Industry Minister Johari Abdul Ghani said his ministry had not initiated an investigation specifically against Speedmatrix due to a lack of evidence of legal violations.

However, the ministry clarified yesterday that neither Megaspeed nor Speedmatrix had been cleared of wrongdoing.

The ministry said it was working with Customs Department to determine whether AI chips imported into Malaysia were subsequently re-exported in compliance with local laws.

Saifuddin did not specify whether either company was under police investigation.

Tighter export controls

Malaysia has faced scrutiny over its possible role in diverting advanced Nvidia chips since early 2025.

In March last year, Singapore disclosed that servers potentially containing Nvidia chips had been shipped to Malaysia as part of a fraud case, prompting questions over their final destination.

Investment, Trade and Industry Ministry subsequently launched inquiries with local enforcement agencies and US authorities, although it announced no findings establishing Malaysia’s involvement.

On July 14, 2025, Malaysia imposed strategic trade permit requirements for the export, transshipment and transit of high-performance US-origin AI chips to prevent their potential diversion to China.

Investment, Trade and Industry Ministry clarified yesterday that the controls did not apply to imports, but covered subsequent exports and re-exports.

Prime Minister Anwar Ibrahim also said yesterday that there was no indication so far that chips linked to Megaspeed had been exported from Malaysia.

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