Malaysia's hopes of becoming a global datacenter hub will be hit by President Joe Biden's latest directive that will limit access to chips with US technology. According to a Bloomberg report, the directive places countries worldwide into three main categories. So, what should you know about it?
For your information, the first category receives full access to the chips for data centres and consists of US allies such as Australia, Japan, Taiwan,n and the European Union. Malaysia is included in the second category with the maximum amount of limited data centre power. Apart from Malaysia, other Middle Eastern and Southeast Asian countries also receive the same fate.
The last category is countries categorised as enemies of the United States, such as China, Russia, Myanmar, and Iran. Countries in this category are barred from importing data centre chips.
Countries in the second category will be granted unrestricted access if they agree to security and human rights requirements set by the United States. The United States will grant Verified End User (VEU) status to countries that comply with these set requirements.
Malaysia and Middle Eastern countries were placed in the second category because the US suspected that these countries were being used by third-category countries to circumvent previously imposed technological barriers. In 2011, a Malaysian company was placed on the US Entity List for selling semiconductors to Russia for military purposes.
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