Biden Launches AI Chip Ban, Malaysia Will Once Again Be Caught in Global Drama!

thecekodok


A week before leaving the White House, United States (US) President Joe Biden shocked the world by announcing new export restrictions on artificial intelligence (AI) chips today.


A total of 120 partner countries will be exempted from the ban, which is still subject to change based on expert and industry views.


US Commerce Secretary Gina Raimondo explained that this action is intended to maintain the US position as a world leader in the development of AI technology and the chips needed for it.


However, this action has received heavy criticism because it has the potential to hinder innovation, damage economic growth, and erode the US's competitive advantage in AI, according to the President and CEO of the Semiconductor Industry Association (SIA), John Neuffer.


However, what does this action mean for Malaysia?


Malaysia has been categorized as a Tier 2 country, which means that Malaysia is only allowed to import 50,000 graphics processing units (GPUs) over a two-year period.


In addition, the computing capacity of data centers in Malaysia will also be more limited.


Analysts have expressed concerns that these restrictions have the potential to damage Malaysia's image as a technology hub and disrupt innovation in the industry.


However, some argue that these measures may not have a significant impact in the short term.


However, Malaysia needs to be prepared to face changes in the increasingly competitive global technology landscape.