Innospec Sdn Bhd says no computer part used involves sensitive tech (moved) from the US to China. (Envato Elements pic)

GEORGE TOWN: A Penang-based electronic manufacturing services (EMS) company has denied allegations that it moved AI computer chips - subject to sanctions from Washington - from the US to China, saying the claim was untrue.

Innospec Sdn Bhd said it only assembles the product "where all materials are consigned by the customers."

"As far as we are concerned, we are assembling parts for our customers where none of the parts is sensitive tech (moved) from the US to China,” the firm told FMT.

The New York Times (NYT), in an article on Sept 6, accused Innospec of receiving computer chips and parts from Aivres, the American subsidiary of blacklisted Chinese tech firm Inspur.