Qualcomm Inc (NASDAQ:QCOM) shares are trading lower on Monday amid possible trade tensions. It was reported that the U.S. is planning to restrict shipments of AI chips to Malaysia and Thailand over China concerns.
According to the Los Angeles Times, President Donald Trump's administration is planning new export restrictions that would require U.S. companies to obtain licenses before sending advanced AI chips to Malaysia and Thailand. The goal is to prevent the indirect transfer of sensitive technology to China.
The updated rules, expected to be proposed as soon as August, target countries that have recently seen a rise in chip-related investment and activity.
The measures will likely include temporary exemptions, allowing shipments from U.S. and allied companies to continue for a limited time without a license. Additional exceptions are also being considered to reduce potential supply chain disruptions.
Officials are also expected to scale back a separate rule on AI chip exports that had faced pushback from U.S. allies and tech firms like Nvidia.
Current restrictions on exports to China and over 40 other countries will stay in effect to curb smuggling and closely monitor sensitive markets.
QCOM Price Action: At publication on Monday, Qualcomm shares are trading 2.54% lower at $158.09, according to data from Benzinga Pro.
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