Malaysian Customs Seize RM49.3 Million Worth Of AI Servers At KLIA Airport

Malaysian customs authorities have intercepted and seized approximately RM49.3 million worth of advanced artificial intelligence (AI) server chips at the Kuala Lumpur International Airport (KLIA). The estimated value of the seized server units, containing cutting-edge AI chips, amounts to around US$12.1 million. The discovery was made during an inspection of the KLIA free trade zone, where authorities found 30 server units filled with advanced AI chips.

The origin of the seized servers is unknown, but they reportedly originated from an Asian country, with the intention of being re-exported to another Asian nation. According to Aspalila Ag Tuah, the airport customs director, the servers were incorrectly declared as "electronic components" in an attempt to evade detection by Malaysian authorities. This marks the fifth known instance of AI chip smuggling through Malaysia, with a similar attempt involving 72 server units intercepted just earlier this June.

The ongoing efforts to smuggle AI chips through Malaysia come as a result of US trade restrictions imposed on AI chips, particularly those manufactured by NVIDIA. These restrictions have been applied to tech and AI companies in China. Despite Malaysian authorities' denial of being a smuggling hub for AI chips and their commitment to tightening export controls after US pressure, recent seizures suggest that the restrictions may not be as effective as intended.