Malaysia seizes smuggled AI chips worth US$12 million at Kuala Lumpur airport
Malaysian customs said on Wednesday that it had seized about 49.5 million ringgit (US$12 million) worth of advanced artificial intelligence chips this month, as authorities close in on a syndicate suspected of smuggling high-performance semiconductors through the country’s main airport. Malaysia imposed export controls last year on the movement of advanced AI chips of US origin, following…
Malaysian customs authorities have seized approximately 49.5 million ringgit, equating to US$12 million, worth of advanced AI chips this month. This comes as the authorities pursue a syndicate believed to be involved in the smuggling of high-performance semiconductors through the country's main airport, Kuala Lumpur International Airport.
In October, authorities discovered 30 server units containing advanced AI chips during an inspection at the airport's free-trade zone. Aspalila Ag Tuah, the airport's customs director, informed reporters that the shipment, which originated from an Asian country, was intended for re-export to another nation on the continent. The shipment had to undergo a trade permit process, as it was falsely declared as electronic components, according to Ag Tuah.
The server units were shipped through Malaysia to circumvent any restrictions when being exported to the next destination. A Malaysian firm that aided in the shipment's transportation has been enlisted to assist in the ongoing investigation. The smuggling syndicate appears to be behind at least five similar cases, resulting in seizures of chips valued at over 100 million ringgit in total. However, the customs director declined to provide additional details due to the ongoing investigation.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
