Microsoft: Malaysia AI rollout on track despite chip supply concerns

KUALA LUMPUR, March 20 — Microsoft said its artificial intelligence (AI) infrastructure rollout in Malaysia remains on track despite concerns over potential disruptions in the supply of advanced AI chips.

At a press conference today, the company said it is monitoring developments related to US export restrictions on semiconductor technology but that its operations in Malaysia have not been affected.

“We are monitoring the situation. At this point, everything remains status quo for us,” said Microsoft Malaysia managing director Laurence Si.

He said Microsoft’s investments in Malaysia, including the upcoming cloud region launch, are proceeding as planned.

“We are committed to deploying our AI services and digital infrastructure on schedule, ensuring Malaysia benefits from the latest technological advancements,” he added.

Concerns over AI chip supply have grown following Microsoft’s announcement of its in-house Azure Cobalt 100 chip, designed to enhance AI capabilities.

Asked whether Malaysia’s cloud region would use the latest AI chips, Si said Microsoft is assessing market demand.

“If there is a market for it, it will be incorporated into the framework and timeline for Malaysia,” he said, adding that there is already industry interest in AI-optimised chipsets like Cobalt. — Bernama