Will Malaysia’s potential Huawei AI deal risk clash with US trade pact?

scmp.com Sep 8, 2026

Will Malaysia’s potential Huawei AI deal risk clash with US trade pact?

Curated by Shubham · TechCapsules · Sep 8, 2026

AI-summarised brief · reviewed before publication

Malaysia is evaluating Huawei’s Ascend 910C AI accelerators for a sovereign artificial‑intelligence programme worth 2 billion ringgit (US$494 million). The project, overseen by the National Security Council, has awarded the operational role to state‑linked Telekom Malaysia after a public tender. Analysts say the choice could test the export‑control commitments Malaysia signed with Washington in 2025, as the United States is actively promoting its own AI hardware across Southeast Asia. A parallel tender may still allow U.S. chipmakers such as Nvidia to compete for parts of the rollout. Malaysian officials are slated to travel to Washington later this month to discuss the matter, underscoring the delicate balance Kuala Lumpur seeks between Chinese and American technology partners.

💡 Why It Matters

· Malaysia’s hardware selection pits its strategic AI ambitions against a nascent U.S.
· trade pact, forcing the country to navigate competing geopolitical pressures in a single procurement decision.

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