U.S. restrictions on AI chip exports to cause sector slowdown: Malaysian research house

KUALA LUMPUR, Jan. 14 (Xinhua) -- The U.S. restrictions on artificial intelligence (AI) chip exports could lead to a sector-wide slowdown, affecting the entire supply chain, Malaysia's RHB Investment Bank said in a report.

Under such restrictions, some companies in Malaysia that produce semiconductor equipment and support the largest fabrication plants might see slower sales, the report said.

Malaysian engineering support players, particularly front-end equipment manufacturers, may also face reduced demand, the research house added.

It also noted that certain technology companies in Malaysia could also be directly affected, given their businesses in the AI server and switch assembly.